A credibility crisis threatens to bury the buck - Monex Europe

A credibility crisis threatens to bury the buck - Monex Canada

CAD USDCAD continued its seemingly inexorable grind lower yesterday, breaking below 1.40 overnight. This is despite the loonie’s typical sensitives to oil and equities both offering headwinds. Instead, market concerns over US credibility are seeing gains across the board versus the dollar, albeit, we do think it is still notable that USDCAD has delivered a middle-of-the-pack performance post-Liberation Day when compared to other G10 FX. Given th…

A credibility crisis threatens to bury the buck - Monex Europe

USD Another remarkable day of FX price action saw some key levels tested and broken. From a dollar perspective, the DXY index slipped below 100 overnight, plumbing depths last in April 2022. Accompanied by falls for both equities and Treasuries, this is an unenviable mix – an ugly trinity of cross-asset moves playing out as traders increasingly shun US assets. Naturally, this has begun to raise questions about the death of US haven status. After…