💵Recent Dollar Price Action Detached From Safe Haven Dynamics: Cable FX Macro

• The dollar rebound seen in recent sessions may raise the argument that the USD's safe haven attributes are back in play. However, this is not the case, despite the historic developments seen in the Middle East.

• For starters, past episodes of dollar appreciation during risk off trading dwarf last week's rally. Without getting into the statistical distribution of returns, the dollar only advanced mildly as tensions rose between Israel and Iran.

• More than a risk off bid, the dollar bid was tactical, as crude oil represents an important role in the U.S. balance of trade. I wrote here that the USD was one of the most sensitive currencies to crude oil, in fact, it is the highest positive beta in our study. This means that the dollar tends to outperform as crude oil rises.

• Below you'll find a historical price graph of the Cable FX Macro Dollar Index with a news timeline summary to highlight recent events.