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Sam Boughedda
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i think it depends what pair you are looking at to be honest.

If you take the CAD or AUD for example, we have seen the USD make gains against both. However, the euro and JPY have seen the dollar sell off against them. SO why? well, both the euro and jpy are used as carry trades or safe havens. So during times of risk, they are bought. This is also true of the USD but the JPY and euro are stronger in that sense. 

There is another factor here as well. the FED cut rates unexpectedly by 50bps. So the market has since been pricing that in. I believe a 25bps cut was priced in but nobody was really expecting a cut of 50 and out of the blue somewhat. there is still the risk that the FED cuts again at the next meeting which I believe is soon.

 

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