The US Dollar cracks under pressure as investors flee to safe-haven bonds.
Markets are spooked by recession fears after several worrying US data releases last week.
The US Dollar index falls below 103.00 on Monday after a bad Asian session.
The US Dollar (USD) sinks lower on Monday, continuing the trend from Friday. The main trigger is the gruesome performance of the Japanese Nikkei and Topix Indices, which closed down over 12% in blood-red numbers. For the Nikkei, it is the worst performance since 1987, pushing investors and traders into safe-haven bonds. With falling yields, the US Dollar is losing its strength as a batch of weak US economic data and lower yields no longer make the Greenback shine.
On the economic front, the week starts with a big batch of data from the Institute of Supply Management (ISM). Traders will be shaking in their boots as the numbers come out, as another batch of disappointing data could further confirm the recession narrative. Luckily, this week does not hold any further first-tier data points, so dust could settle later in the week.
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