The dollar rose against the yen in Asia Monday as non-Japanese hedge funds and banks adjusted their portfolios ahead of key central bank policy-making meetings. In preparation for Tuesday’s meetings, European banks and Asian hedge funds sold the yen to adjust their currency portfolio, dealers said. Japanese institutional investors were
Source:Morning Forex Overview
U.S. Dollar Trading (USD) was under pressure until the Fitch Downgrade of Spain put downside pressure on stocks and and the Euro. Markets we less volatile however as the Holiday weekend in the US caused volumes to be less than usual. Chicago PMI fell from 59.7 vs. 63.8 previously. In
Fitch cuts Spain’s AAA rating (to AA+). That could continue to weaken European financials today. Some of our long-term trend indicators are turning around (bearish) and money markets indicators still signal increasing tension due to the PIIGS sovereign debt crisis and the interbank market. We change our short-term outlook for
Source:Fitch Cuts Spain's AAA Rating, May Weaken European Financials Further Today
The dollar index mid-term charts have just started a re-cycle going long that looks to have legs if the global equity markets cannot quickly find buyers. The inverse Usd/Equity pattern is rock solid at the moment, and shows no signs at all of losing those strong links. The trend reads
Source:Dollar Index, Risk, and Demand, To Be Tested This Week
