Traders are witnessing a swing change in market mechanics that reveals a lack of institutional and speculative interest in moving the risk, demand, interest rate, and currency markets, ahead of the U.S. session.

That is a departure from the 24-month historical norm that has European trade as the instigator of sustainable moves.

Trusting the new dynamic to hold well enough that it becomes a normal pattern of trade is questionable, especially as the hiatus from the norm has come at a time of half-year book-balancing, and just ahead of second-quarter earnings season.

The additional departure from the norm is that when risk and demand (equity and commodity) markets move higher, the USD gets sold. However, when risk and demand is sold, the USD is not bought to the same degree.

The changing of the time that momentum hits and the changing of the inverse USD/Equity links may be short term. For forex traders who have already sat and waited through the quarter-end book balancing and then absorbing a bank holiday weekend ahead of interest rate decisions from the U.K. and Euro-zone, patience will be a virtue in the intra-day, buy-support and sell-resistance markets.
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