* Dollar Puts in for its First Real Advance in 10 Days - Sustainable?
* Euro Weekend Troubles Hardly New, Outlook Still Mixed
* British Pound Faces Inflation Data, A Tempered Number Could Bring More Stimulus
* Australian Dollar Finds No Support from RBA Minutes or Chinese GDP Figures
* Japanese Yen: How Real is the Threat of a Plan to Rein in the Currency Next Week?
* Canadian Dollar Tumbles on Risk, 3Q Business Health Survey
* Gold Puts in for a Notable Reserved Performance on Risk Aversion Day
|
Written by: John Kicklighter, Senior Currency Strategist
|
| Dollar Puts in for its First Real Advance in 10 Days - Sustainable? |
| The US dollar managed its first serious advance in 10 trading days Monday. It shouldn't surprise that this bullish performance coincided with the S&P 500's first substantial down day in the same amount of time. Regardless of what the catalyst is, the greenback is playing the role of liquidity provider when risk aversion hits a high note. Yet, for those that want to determine whether this tentative turn is the return to a dominant bear trend on investor sentiment or a necessary (but temporary) pullback before the climb resume; the source of this correction is important. The first thing to ascertain though is that this was a serious move. We can confirm the market influence of this opening drive through the impressive correlations it has drawn across various FX pairs and beyond to different asset classes. With high-yield currencies, equities, speculative commodities and bond yields all taking a sharp turn lower; it is a safe assumption that this move has roots... |
Best regards,
DailyFX Research Team
research@dailyfx.com |
21:01
AutoForexTradingPro
