The US Dollar may be setting up for sharp gains against most major currencies as risk appetite dwindles across financial markets. The MSCI World Stock index, a composite of global equities’ performance, is now positioned ahead of key resistance marked by the top of a falling channel that has contained prices since mid-October of 2008. A reversal lower is likely to encourage demand for safe-haven assets, boosting the greenback against the likes of the Euro, Pound and commodity-linked currencies.
