Recent price action indicates that the USD has formed a major intermediate low. Watch for additional USD gains in the months ahead.
Negative intermarket correlation between gold and the DXY remains intact.
Gold peaked at 1030.80 in Q1 2008 – at exactly the same time the DXY bottomed at 71.21.
Recent commodity price correction triggered a bearish trend [...]
Tags: Forex Signals
FX Implications: The S&P500 closed at 1106 on September 29, well be below the support level of 1218 that was needed to trigger a USD/CAD buy signal.
A significant inverse relationship exists between extreme monthly returns in the S&P500 and 1- & 2-day USD/CAD returns at the turn of each month. This reflects Canadian equity portfolio [...]
Tags: Forex Signals
Rates markets swung back and forth on prospects for the Treasury’s Troubled Asset Relief Plan (TARP) working its way through Congress. Financial stress remains high. Money market mutual fund withdrawals drove Treasury bills to record low yields earlier this week but yields have begun to normalize as withdrawals stabilize and the Treasury provides more supply [...]
Tags: Fixed Income Strategy