Thursday, January 27, 2011

The USD - Which Way Does It Go

Well the DXY broke out of its wedge.  Only problem, it broke out both directions and now is back in the middle again.  Geopolitical risk could come into play here pretty soon.  Riots for both food and political reasons are growing worldwide.  As we have witnessed with the equity markets, when group think takes over, it's almost impossible to start a movement.

It will be very curious to see how things in Egypt play out as they appear to have a pro democracy leader heading back to Egypt today to help lead the movement.  It is certainly a very tense time in the world and like the USD or not, it does represent short term safety and could very easily catch a bid as the risk trade is unwound.  Something to keep an eye on at least.

Markets appear to be more volatile the past few days in terms of intraday swings versus the December non stop march of the bulls.



Share/Bookmark

No comments:

Post a Comment