Concerned about the political wrangling over servicing US debt prompted Fitch to put the US on negative credit watch. Besides chin wagging and finger pointing, it has had little perceptible impact. The dollar is mostly higher, reaching new highs for the year against the Japanese yen, Chinese yuan, and the Antipodean currencies. The euro and sterling met retracement objective we have targeted (~$1.0735 and $1.2435, respectively). The greenback is also firmer against nearly all the emerging market currencies but a small handful that includes Russia, Mexico, and Taiwan. Gold reversed lower yesterday from $1985, the ... (full story)