Forex EUR/USD Daily Video, March 19, 2020

sveckar22

Corporal
Messages
78
Mr. Sive what do you think of sudden appreciation of the US Dollar across all pairs. COT report wouldn’t suggest so much buying from Non-Commercial traders, is this flight to safety from other parts of the world?

Thank you
 

Sive Morten

Special Consultant to the FPA
Messages
13,142
Mr. Sive what do you think of sudden appreciation of the US Dollar across all pairs. COT report wouldn’t suggest so much buying from Non-Commercial traders, is this flight to safety from other parts of the world?

Thank you
In general, yes. USD usually is treated as a currency of repairing, as US is possessed as the center of future recovery, the safe haven. But even by technical view on the financial system - USD is 60+% of all currency in turnover, this is major reserve currency. In wealthy times, it is distributed, changed to invest in other assets, that provide greater return. In difficult time - the reverse process is coming - people demand for USD. And as it is more than 60%, for demand stands, other currencies stand under stronger pressure as this is not 1:1 proportion in demand ans supply.
 
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