US dollar bounces but it's still an ugly picture ...Middle East

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US dollar bounces but its still an ugly picture

The US dollar weakness is getting serious.

It's a holiday in much of the trading world today but the dollar selling had been steady until the last hour when it bounced. In that time, dollar weakness has cleared several hurdles:

    USD/CHF lowest in 10 years EUR/USD highest since 2021GBP/USD highest since OctoberUSD/CAD lowest since NovemberUSD/JPY lowest since SeptemberDXY lowest since 2021Gold all time high

    Coming into the year the US dollar was sizzling hot and hitting multi-year highs against most of the currencies on that list. It's been a rapid and worrisome turnaround that's undone most of the correlations that ran for the last 15 years.

    The risk-on/risk-off trade has been teetering for awhile and now it's utterly broken. S&P 500 futures are down 1% today and yen NZD/USD is up more than 1%.

    Just six months ago this magazine cover might go down as one of the all-time counter indicators.

    This article was written by Adam Button at www.forexlive.com.

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