It seemed like we had 5 days under the belt; then at the end of the day stocks retreated. The fun is over, at least for now. It was a near thing. Most of the day was gone. So close, yet so far. Check out the Forex EUR/USD Chart above. If you look at the bar circled above, you can see the retreat reflected. The correlation between Dollar Strength and Equity weakness still seems firmly in place.
There are some note-worthy news items this week. If more negative news comes out…or even if there is no more positive, then we could be on the way down again. Promises are all well and good, but we need more concrete actions. The G20 didn’t really deliver on that front. It is also clear that we are still in trouble as far as the economy goes.
Watch the Markets…if we go up, the Dollar will continue to fall. If not, then it will be back to business as usual.