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How Dangerous are Technical Conditions for Dollar Bulls?
Anticipating a yawning divergence of monetary policy between the world's largest central banks, market participants continued to drive the dollar higher over the past week. In fact, the greenback appreciated against all the major and emerging market currencies except the Malaysian ringgit and South Korean won. Next week is one of the most eventful weeks of the year, and the speculative community has amassed a very large long dollar position. It begs the question of whether the ECB cannot help but disappoint market expectations and spur a serious correction to the dollar's rally, whose most recent leg higher began in ... (full story)