USD/JPY, USD/CAD: SAFE HAVEN DOUBTS LEAVE U.S. DOLLAR ON THE ROPES
USD/JPY, USD/CAD: SAFE HAVEN DOUBTS LEAVE U.S. DOLLAR ON THE ROPES
Investor sentiment is shifting as markets begin to doubt the U.S. dollar's role as a safe-haven currency, leading to a decline in the dollar's value despite rising yields.
Both USD/JPY and USD/CAD currency pairs have fallen below significant support levels, indicating potential for further downside movement as market participants adjust their positions.
President Trump's unexpected decision to pause tariffs on several trade partners, while increasing tariffs on China, has created market uncertainty, contributing to the dollar's weakness.
Falling U.S. Treasury yields have added pressure on the dollar, as investors seek higher returns elsewhere, further challenging the dollar's safe-haven appeal.
Investor preference has shifted towards traditional safe-haven assets like the Japanese yen and Swiss franc, leading to the dollar's decline against these currencies.
Ongoing trade tensions and inconsistent policy decisions have led to diminished confidence in U.S. assets, contributing to the dollar's depreciation.
