The U.S. Dollar rose sharply on Thursday as traders shed riskier assets for the safety of the Greenback. Fears of a global economic slowdown because of weakness in China,Germanyand the U.S.helped put the pressure on the Swiss Franc, Japanese Yen and Canadian Dollar.
Late in the trading session, Moody’s rating serviced downgraded several major banks. This could trigger further downside pressure in the major currencies as investors will likely head to the sidelines again today, seeking the protection of the U.S.currency.
Because of the sharp sell-off the past two days, oversold conditions and profit-taking ahead of the week-end could trigger a late-session short-covering rally.