John Kicklighter
Dollar Extends its Decline as Dow Index Threatens Surge
The US Dollar has dropped in 10 out of the past 13 sessions. By anyonersquo;s standard that is a clear bear trend. Yet, we are still finding a lack of conviction in risk appetite trends.
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Dollar Gains Against Euro but Little Else, Awaiting Equities
The dollar didnrsquo;t show any intrinsic strength through the past session ndash; though neither did it suffer weakness. The euro was lower across the board Tuesday. Selling pressure on a weak day for risk appetite positioning isnrsquo;t remarkable, but it is worth noting that the bearish pressure also occurred on a particularly heavy day for lsquo;promisesrsquo;.
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Japanese Yen Rally Raises the Threat Level of Intervention
Itrsquo;s difficult to take warnings from Japanese Finance Minister Azumi and Bank of Japan Governor Shirakawa seriously, but we need to be on a href=”http://www.dailyfx.com/forex/fundamental/forecast/weekly/jpy/2012/01/28/Japanese_Yen_Strength_At_Risk_As_Intervention_Threats_Resurface.html” class=”gsstx”high alert for possible intervention/a from the Ministry of Finance or BoJ.
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Dollar Selling Doesn#146;t Necessarily Require a Risk Appetite Drive
The US dollar fell against all of its most liquid counterparts this past week. In fact, the a href=”http://www.dailyfx.com/forex_market_news/us-dollar-index/” class=”gsstx”Dow Jones FXCM Dollar Index/a tumbled for 9 out of the 10 past trading days and subsequently closed out the trading week at its lowest level since November 14th.
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