Archived IMT (2009.06.12)

After a week-long showing of intraday noise and closing sessions that were little changed, US stock indices head into the red to the favour of the US dollar. The weekly S&P500 chart shows little progress while the Dow weekly could post a doji star. The ensuing stabilization of the dollar could be given further leg up this weekend when G7 officials express concerns about excessive volatility in FX markets, which will be interpreted as a warning against excessive dollar weakness. We reiterate such statements are unlikely to break the dollars down trend but remain valuable trading opportunities.