The Us dollar was mostly flat against the majors during the Asian hours, but we can already see some strenght now, as European stocks trade lower.
Well, trading in this week should be quite interesting, to see how broken correlation between Eur/Usd and the equity market will play out, which was broken in the past week, when dollar and stocks found sellers after the poor US economic data. Well we still think that further weakness on stocks may cause the reversal on the US dollar and send the Japanese yen even higher at the same time. More in the video below. Price action will tell!
Guest Posted by Gregor Horvat