There have been some large moves in the foreign exchange market in recent days. The euro posted its largest rally in four months last week. The yen has fallen to its lowest level against the dollar since June 2010 and extended the declining streak to nine consecutive weeks, something not seen since 1989. The Canadian and Australian dollar rose to multi-moth highs, as did the Mexican peso. In last week's technical note, we suggested the key question whether the sharp drop in the major foreign currencies following the avoidance of the full fiscal cliff in the US was trend reversal or overdue correction. We favored the ... (full story)