dollar breakdown in progressThe picture has turned darker, with September, December and March contracts all falling below $DX 80. DEC is down to 79.10, and the chart indicates that the buck will not hold 79.
I would attribute this to expectations that the FOMC will cut the target rage next week, but Treasuries are still too strong, and they haven't yet priced in the news that foreign holders are net sellers of U.S. treasuries for five weeks running.
The exodus from the dollar is still mostly under the radar.
I'm guessing this has more to do with fears of a market breakdown in equities.
U.S $ INDEX (NYBOT:DX) View all months | Download data | Analyze Chart
Market Open High Low Last Change Pct Time
DX.U07 Sep 2007 79.51 79.53 79.31 79.38 -0.29 -0.36% 12:45
DX.Z07 Dec 2007 79.360 79.420 79.150 79.165 -0.335 -0.42% 12:45
DX.H08 Mar 2008 79.10 79.10 -0.33 -0.42% 11:48