The US Dollar is Rocketing Higher as a Safe Haven

The U.S. dollar has been rising for almost one week and has managed to sustain a decent run to the upside. USD bulls have pushed to the north for six consecutive sessions, having gained as much as 1.60% within the noted time frame.

Looking at the DXY, the price is trading just off its highest levels in some four months. It has been on the ascent since the beginning of the year, having started down at depressed levels of 96.40. At the time, this territory was the lowest seen since July 2019.

Why has the USD been rising?

The flows into USD have been partly as a safe-haven, against the Coronavirus fears in China. It has been seen as potentially the most encouraging, given the increased economic stability seen in the United States versus its peers.

Data has continued to improve recently for the country, last week; solid ISM manufacturing and non-manufacturing PMIs, a strong number of jobs added and wages picked up in the United States.

Separately, investors and large hedge fund players will be loading up[ on the greenback, given that it is a high-yielding greenback, in comparison to other economies. The Federal Reserve has higher paying interest rates versus its peers.

Most recently there was some upbeat commentary today from Fed Chair Powell, addressing Congress. He was fairly upbeat about the outlook for the U.S. economy but cited a potential threat from the coronavirus in China.

Interested in learning how to trade fundamentals yourself? Check out our course here!

Click Here To Become A Member To understand and stay on top of all market themes and how to implement into trades.