Dollar Sell-Off Continues, EUR/USD Surges 1%

The dollar sell-off continued on April 21, leading to a broad-based decline in non-US currencies. Analyst Adam Button noted that despite thin market liquidity, the USD selling persisted. The EUR/USD exchange rate rose above 1.15, marking the first time since November 2021, with an intraday gain of over 1%. This movement indicated a lack of confidence in the U.S. economic plan, which has been a cornerstone of the global financial system for over 80 years.

In addition to the rise in the EUR/USD exchange rate, the USD also fell against other currencies. The USD/CHF rate broke below an 8-day consolidation range, hitting a nearly 10-year low. This decline in the USD reflects a broader trend of investors losing faith in the U.S. economic policies and seeking safer havens in other currencies.

The continued sell-off of the USD has significant implications for the global economy. The USD has long been the world's reserve currency, and its decline could lead to increased volatility in financial markets. Investors may turn to other currencies, such as the EUR and CHF, as alternatives to the USD, further exacerbating the decline in the USD's value.

The market's lack of confidence in the U.S. economic plan is a worrying sign for the global economy. The USD's decline could lead to a period of economic uncertainty, similar to the stagflation experienced in the 1970s. This could have far-reaching consequences for countries that rely on the USD for trade and investment.

The sell-off of the USD is a complex issue that requires careful analysis. While the decline in the USD's value may be beneficial for some countries, it could also lead to increased economic instability. Investors and policymakers must closely monitor the situation and take appropriate measures to mitigate the risks associated with the USD's decline.