US dollar takes a quick dive

The US dollar has taken a quick move lower and it’s not clear why.

The usual spots aren’t indicating any news so there is some head-scratching going on. It’s not often you see a stop-driven move of this kind of magnitude at this time.

Equities have perked up a tad while the bond market isn’t doing anything.

A short time ago there was a report from Zelensky saying he would be open to a territory swap in a peace deal. I guess that could be it as the euro has been particularly strong. I think that’s a stretch though as something around Kursk was already everyone’s base case.

Update: As time goes on, it looks more like a flow/Ukraine driven move as nothing else appears to be trickling out. A darker theory would be some kind of leak of CPI and that will certainly get some believers if tomorrow’s data is soft.

This article was written by Adam Button at www.forexlive.com.