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Dollar drives home its haven advantage-USD index rises above 105.50

The EUR/USD has just now traded below the 1.0700 handle. That further fall comes as the European stock markets continue to flounder. The element of risk aversion has clearly increased ahead of the weekend, but it was heading that way since the middle of the week. This has all played into the eager arms of the US dollar. Hence the USD index (USDX) has snapped the slide it suffered earlier in the week, when the price fell briefly back below its 200 day moving average (then at 104.44). Well, it has certainly recovered that fall and more. The index is now rising to a new interim high around 105.55 after posting a US close last night at 105.19. So, as you can see, the dollar has brushed aside all the impact of the lower US inflation readings this week and continues to feed off a more hawkish Fed and a more heightened risk averse outlook 
 

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