The USD was hammered again this week, and you can pick your reasons why: a sharp drop in US consumer confidence; further declines in housing data; increased fears of a US recession leading to lower US rates; skyrocketing commodity prices; the sun rose in the East yet again. You name it and it was a reason to sell the USD. Never mind that US stocks finished their best month since 1998, or that Aug. US consumer spending gained more than expected, or that weekly ABC consumer sentiment improved from -20 a month ago to -11 in the latest week, or that jobless claims data have yet to confirm the labor market weakness evident in the Aug. NFP report. Ignoring positive data and embracing negative data are the hallmarks of a downtrend and that certainly seems to be the current situation for the greenback.  Full text »

digg this! | del.icio.us | Technorati | Stumble It! Read More...

Filed under: Weekly Strategy