For the last two years the Forex market has been controlled by two stories. One is the dollar/anti-dollar story based on the US dollar’s status as world reserve currency, and the other story is risk assumption and liquidation. The question of the dollar’s sustainability as the world’s reserve currency is by far the bigger story in the Forex market as 90% of currency transactions pass through the dollar, and many countries hold our dollars as savings and collateral for issuing their own fiduciary medium of exchange. When this story moves to the background, then the risk on/risk off trade dominates the market. So ... (full story)