The New York forex market's safe-haven trend emerges, and the US Dollar Index stabilizes after four days of correction

OnChainDetective · 2026-03-05T02:11:54+00:00

The New York forex market has recently shown a clear divergence, with safe-haven funds flowing significantly into the Japanese Yen and Swiss Franc, while commodity currencies generally come under pressure. U.S. Treasury yields are falling across the board, and mixed economic data are affecting the currency market. The market remains attentive to the upcoming U.S. CPI data, with risk appetite noticeably declining.

OnChainDetective

2026-03-05 02:11:54

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The New York foreign exchange market has shown clear divergence recently amid rising risk aversion. The Bloomberg US Dollar Index stabilized after four consecutive days of decline, with market focus shifting in multiple directions—on one hand, attention to upcoming US CPI data; on the other, the differentiated impact of safe-haven buying on various currencies.

Safe-haven funds flood in, Yen and Swiss Franc lead G-10 gains

Driven by a sharp drop in US stocks, safe-haven funds have flowed heavily into traditional safe-haven currencies. The Yen and Swiss Franc performed the strongest among G-10 currencies, with the Yen marking its longest streak of four consecutive days of gains since December last year. USD/JPY fell over 0.3%, hitting a low of 152.75, while USD/CHF declined 0.32% to 0.7691. The strength of this safe-haven buying reflects increased caution in the market toward risk assets.

US Treasury yields fall across the board, economic data in focus

The US Treasury market responded similarly, with yields falling across the board, including a drop of more than 7 basis points in the 10-year Treasury yield. Notably, the 30-year Treasury auction was not only successful but also attracted strong demand, indicating long-term debt assets remain popular. Last week, initial jobless claims in the US slightly declined, moving away from the surge caused by harsh winter weather. This combination of data creates a complex support logic for the forex market.

Commodity currencies under pressure, AUD and CAD diverge

In an environment of spreading risk aversion, commodity-related currencies generally came under pressure. The AUD/USD fell the most, down 0.55% to 0.7088, ranking among the biggest declines in G-10 currencies. The GBP/USD also remained weak, down less than 0.1% to 1.3621, marking its third consecutive day of decline, with UK Q4 economic growth falling short of expectations further weighing on the pound. In contrast, USD/CAD rose for the second straight day, closing at 1.3613, indicating the Canadian dollar remains relatively under pressure. This round of adjustments in the New York forex market fully reflects a decline in global risk appetite.

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