The U.S. Dollar is trading sharply higher after U.S. stock indices plummeted shortly after the release of a better than expected ISM Report.
The U.S. Dollar is trading sharply higher after U.S. stock indices plummeted shortly after the release of a better than expected ISM Report. The reaction in the Dollar was in response to the sell-off in equities as investors shunned higher risk assets. Many traders feel that today’s report was already factored into the equity markets.
The Dollar opened stronger this morning but gave back some of its gains following the ISM report. It started to weaken when equity markets began to stall. The Dollar accelerated to the downside once equity markets turned negative. Currently stocks are hovering inside of key retracement zone. This could produce a choppy, two-sided trade the rest of today.
The USD JPY is struggling to stay positive. The weakness in the equity markets is sending Japanese investors to the safety of the lower yielding Yen.
On the other hand, higher Forex pairs such as the AUD USD and NZD USD are selling off fairly hard as traders dump long positions to avoid risk.
The USD CAD took some heat early in the trading session when equities and energy markets firmed. Losses were erased once these two markets started to accelerate to the downside.