The dollar is finding little succor from the falling equity prices. The yen remins firm in the wake of the election and amid speculation of repatriation ahead of the end of the fiscal half year at the end of Sept, especially given the tax incentives (via the Japaense equivalent of the US Homeland Investment Act). Trading conditions appear a bit lighter than normal but it is month-end with re-jigging of portfolios and hedges expected.
The euro has rallied a full cent off its earlier lows, but the pre-weekend high of $1.4388 and last week's high near $1.4406 appear safe for the time being. That said, there appears to be a desire to test the upper end of the rumored double-no-touch option structure near $1.4450.
Sterling has rallied a little more than a cent off its earlier lows. The session high was recorded in Asia just above $1.63. With the hourly momentum reading stretched the session high seems likely to hold.
The dollar is flirting with an 9-month uptrend line against the yen, drawn off the last Dec 08 lows and the mid-July lows. A break of JPY92.55 now warns of a test on those July lows near JPY91.75.
Dollar Slips even as Stocks Tumble
![Dollar Slips even as Stocks Tumble]()
Reviewed by magonomics
on
August 31, 2009
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