Daily Forex Commentary January 4, 2010

January 4, 2010

Dollar Poised for Acceleration to Downside

Monday’s strong rally in global stock indices and break in the Dollar renewed talk of the resumption of the negative correlation between global equity markets and the U.S. Dollar.
Aggressive traders appeared to be already placing bets today that the Fed would continue to leave interest rates low for a prolonged period of time. Today’s action suggests that investors could be
getting comfortable with taking on more risky assets once again.

The chart pattern in the U.S. …

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