By Andrei Skvarsky.
Online broker IronFX Global says the US dollar’s slide on March 13 is likely to be short-lived because of the escalating Ukrainian crisis.
The dollar’s downturn against all the G10 currencies and 15 principal emerging market currencies is the effect of a risk-on sentiment that took shape the day before, according to Marshall Gittler, head of global forex strategy at the Cyprus-based company, which trades in forex, shares, futures and spot metals, and has 50 offices across the globe.
Gittler believes the dollar has been pushed down by a rising price for copper, but he says he can’t quite fathom why copper has gone up.
Gittler concludes that, with the Ukraine crisis getting worse and positive dynamics that have started in China having yet to play out, risk aversion would be back and push the dollar back up before long.
IronFX serves retail and institutional customers from over 180 countries in Europe, Asia, the Middle East, Africa and Latin America, and has more than 1,100 employees worldwide.