On April 11, the U.S. Dollar Index (DXY) plunged to 100.05, briefly breaking below the psychological threshold of 100 for the first time since April 2022. The index declined –0.81% intraday, marking a significant loss in momentum. The move reflects growing distrust toward U.S. assets and currency, amplified by ongoing trade disputes and geopolitical instability.
This is more than a typical FX adjustment—it signals a "crisis of confidence" in the dollar. Historically seen as a safe-haven asset, the greenback’s weakness amid rising global risk diverges from its traditional role.
Markets are now seeing a reversal of the usual "flight to safety" behavior, with investors increasingly cautious about U.S.-driven geopolitical and trade risks.
If this trend persists, the weakened dollar could trigger broader risk-off sentiment in U.S. equity and bond markets. Conversely, a dollar rebound would suggest receding systemic risk, making the Dollar Index a critical leading indicator for global investor sentiment.
Source: https://t.me/cahier_de_market/5244
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