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  • Dollar swings a mighty hammer...

    * Dollar swings a mighty hammer... * FOMC expected to sound more hawkish... * Euro Opportunity currencies rally... * RAB leaves rates unchanged, but AUD$ falls... ** Dollar swings a mighty hammer... Good day...The dollar rallied again yesterday, and shot up even more overnight as the markets prepare for the rate announcement from the Fed. Falling oil prices helped propel the greenback higher, as oil fell below $120 a barrel for the first time since May. This latest move puts the dollar index close to 74, the point at which the last dollar correction ended back in mid June. The technical guys are all waiting to see if the index can break through 74.31, a sign that further strength is possible. But I don't pretend to be a technical analyst and would much rather look at the economic fundamentals to figure the direction of the dollar....
  • Profit Taking Dominates The Day...

    * Dollar faces Dynamic Duo this week... * RBA leaves rates unchanged... * Comparing decades... * Tankan is somewhat positive... ** Profit Taking Dominates The Day... Good day... And a Terrific Tuesday to you! In keeping with Pfennig tradition, I begin each July with words from one of my fave bands of the 70's, Uriah Heep... There I was on a July morning... (I could go on, but you get the point.) Well, the profit taking that I talked about yesterday morning, continued for most of the morning yesterday, causing the euro to fall from the 1.5810 level I saw when I turned on the screens, to the low 1.57 area. It had to be profit taking because why would anyone buy dollars VS euros as a long time investment, with the dynamic duo of the Jobs Jamboree and an ECB rate decision staring the dollar bulls right in the face this week......