FN: The US dollar, as measured by the USD Dollar Index (USD), looks set to hammer out a Double Bottom around the 78 - 79 area. As the equity markets rallied and volatility (VIX) dropped, the safe haven bid dissipated. Investors sold dollars and treasuries to pile in to risky assets. This coupled with concerns over Obama's monster deficit spending plan put downward pressure on the dollar. HOWEVER, and this is really important, the rest of the world and the rest of the world's MAJOR currencies are far worse off.
With the first cracks appearing in Eastern Europe that safe haven bid should come back, especially since it is becoming more and more likely that this Bear Market rally in equities has run its course.
With the first cracks appearing in Eastern Europe that safe haven bid should come back, especially since it is becoming more and more likely that this Bear Market rally in equities has run its course.
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2 comments:
It is literally DO OR DIE time for the US DX.
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