The market swings continue. Dollar falls as risk trade rebounds

The US dollar is stumbling in yet-another turn today. There’s no news behind the move but it’s indicative of the kind of market it’s been in the past two weeks. We’re getting repeated, 50-pip moves on nothing or small swings in sentiment. Those often reverse but timing it all is a puzzle.

The moves speak to some of the conviction that’s lacking in the market. There’s optimism around global growth right now but fear about interest rates. That’s created a push-and-pull that’s sapping conviction from the market.

Earlier today, USD/CAD hit the highest since January 5 but it’s now given it all back.