Bad news and the dollar… falls?
Posted by Ray on July 1, 2010 under Economy, Markets, The Federal Reserve | 
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Well, this is beyond me, the DXY is dropping like a rock below the 50 day moving average on horrible news driving futures higher. There is simply no reason for this whatsoever as bad news usually rallies the dollar. What is more odd is gold and silver are also down fairly substantially as well. Frankly, it is not adding up in my book and something stinks. Correlations and inverse correlations don’t just break down for no reason on without any news. Perhaps one should be careful shorting this market today and look for a retest of 1040, the Euro is up large @ 1.24 + 0.0161 when the banks had to barrow a substantial amount for 6 days from the ECB which indicates problems. Stay nimble.
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