Maybe the Buck Loses the Next Race to the Bottom

Now that global recovery is gaining momentum, according to the pundits, and risk appetite is back on the table, maybe the US dollar index is due for correction:

A Full Opening Act ... to Keep Traders’ Blood Flowing

February US Nonfarm payrolls are reported tomorrow. Typically it’s a snooze-fest in the markets for the 24 hours or so leading up to that report.

But the week’s been full of data points to give traders reason to stay awake.

The Reserve Bank of Australian and the Bank of Canada both announced monetary policy; RBA hiked 25 basis points, while the BOC sat on its hands.

The cable could get above 1.50 psychological level again with a triggered wave of market optimism by BOC brighter economic assessment of the current after leaving the interest rate unchanged today which refer to a coming tightening action and today RBA rising the interest rate by another .25% which increased the investors' risk appetite weakening the greenback but the worries about the worsening economic situation in UK is still containing the market sentiment weighing on the British pound which slumped to 1.4785 versus the greenback earlier this week with accumulating pressure has been triggered by a huge bargain between AIG and the British insurance company Prudential for buying the Asian parts of the first for about 35$ Bln.

Greece stabilized? If so, what next for euro? ECB rate cut?

Some analysts have the view that if Greece is stabilized it will prove the euro has passed a major test, and lead to a fresh new rally against the US dollar. Of course we can never say never when it comes to trading/investing, but it seems an unlikely course precisely because of the key element needed by Greece and the other states in fiscal jeopardyausterity.