Thursday, February 3, 2011

USD Update

The USD has bounced.  For those wishing to NOT pay $5 for bread, let's hope this is a trend reversal and not a bounce.  Odds favor a bounce though so start buying $3 bread and put it in the freezer.  Oil has not bounced much so this USD bounce appears to be more technical in nature versus a flight to safety with the crisis in the Middle East (anyone really believe it is limited to  Egypt?).  Trichet was also less hawkish than some had expected which is putting downward pressure on the euro.  If memory serves, the Euro is about 50% of the DXY.  Regardless of the actual percentage it represents the largest currency.


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