Markets proved they could still fall yesterday. After having rallied for 15 of the previous 18 sessions, we were beginning to wonder if it were still possible…
In an interesting turn of events, investors actually succumbed to the harsh economic realities of the day. There’s no telling how long this momentary lapse of unreason may last, of course, but we’ll take what we can get while we can get it.
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The Bias to Sell US Dollars Remains
Well, the dollar continues to dance with the wolves, and though the heavy selling has backed off…you can just tell by the way the markets react each day, that the bias to sell dollars remains.
For instance, the euro (EUR) is flirting with 1.45 this morning, after visiting that level a couple of times yesterday. The Aussie dollar (AUD) is back to $1.05, and kiwi (NZD) is 79-cents this morning! The Canadian dollar/loonie (CAD) has pulled back, as the price of oil has dropped $5 in the past two days, and the Swiss franc (CHF) has added to its $1.11 figure of yesterday… So, while not every currency is gaining on the dollar, most are… Gold and silver, after losing some large chunks of ground yesterday, are back on the rally tracks this morning…
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