DislikedEXTREMELY Ultra Massive USD Hatred in the market today...
I bet even McDonalds in New York are asking to be paid in EUR, or AUD, or CHF..Ignored
(1) Egypt has survived for today the Million Person march and thus Dow is now OVER 12,000 again.
(2) ISM was strong over 60 so funds are moving out of safety of US Dollars through treasuries and into Gold and Oil and as the Bonds are sold US Dollars are sold to buy other asset classes. Things look better in Europe and GBP/USD is over 1.6100 and USD/CAD is at 99.00.
(3) The second RISK is back like say Eygpt or Europe debt or profit taking in the Dow things reverse big time. It is all about the flow of funds in and out.
The market makes a lot of sense if you let it.
Of course INTERVENTION always moves things at any time. Do you see USD/JPY at 81.36 yet when it was downgraded it was over 82.00
Nothing is accidental in forex. You just need to understand it by more than the charts. On Friday if the NFP is 100,000 or less we may see Dow at 11,500 and EUR/USD at 1.3700 or lower. Be calm, relax and keep buying hamburger's at Wendy's.