Archived IMT (2010.01.22)
FADING CORRELATION between the USD and major equity indices is best highlighted by EURUSD-S&P500 **** http://chart.ly/c7ynqh **** , which hit a 4-month low of 0.27 from an average of 0.84 in June-Dec. As the chart indicates, the decline of the correlation accelerated in mid December, coinciding with Greeces credit downgrade, which eroded the euros role as a risk currency. With the USD trading at its 200-day MA for first time in 8 months, and emerging consensus for US Q4 GDP standing at 5.5%, well above that of the G5, the anticipatory nature of USD-longs will likely remain at least into mid Q1. This could help maintain a win-win scenario for the US dollar, whereby falling equities to continue propping the low yielding currency and improved risk appetite is associated with higher probability of a Fed tightening.
Latest IMTs
-
Of Gold Extensions مقياس إمتدادات الذهب
by Ashraf Laidi | Apr 15, 2024 16:38
-
Bitcoin performance & Miners Prehalving
by Ashraf Laidi | Apr 9, 2024 17:07
-
English Translation to Arabic Interview
by Ashraf Laidi | Apr 7, 2024 21:01
-
فشل الفدرالي في إقناع الأسواق
by Ashraf Laidi | Apr 6, 2024 14:17
-
Typical Errors on Gold, Silver, USD
by Ashraf Laidi | Apr 1, 2024 16:14