The combination of soft US price data and mostly weaker economic data lends credence to a new economic convergence. The economic news stream from Europe, Japan, and China is not particular inspiring. Rather the convergence is driven by the materialism of the long-anticipated slowdown of the world's largest economy. This new convergence is negative for the dollar. Our conservative working hypothesis continues to be that the US dollar's gains from the middle of July are being retraced. While we suspect that more than just a technical correction is unfolding, given the high degree of uncertainty and the uniqueness of ... (full story)