The dollar has rebounded very quickly the past few days, and there are no roadblocks right now. The risk takers in the markets are running for safety again, sent running by China’s decision to curb lending and attempt to slow growth before their economy overheats.
You see, China was the linchpin for risk taking, because with China growing, commodities were in need, and commodity countries were very happily sending those commodities to China. The commodity countries would then be flush with cash, rising job creation, and be confident about their future… Interest rates would rise to combat inflation in the commodity countries, and the karma would be flowing for each respective currency.[Read more...]