Warren Buffett“A public opinion poll is no substitute for thought.”
Adlin Sinclair“Success is a welcomed gift for the uninhibited mind.”
Bullish Dollar on Rate Bets, Stocks Downmarket
TheU.S. dollar reached thehighest level inamonth versus theEuropean common currency andalso gained versus all
options among currencies aspessimism returned tostock markets andbets that interest rates intheU.S. will be lifted rose.
After anemployment report that shifted market sentiment last Friday, thedollar found support torally strongly versus currencies linked tocommodities like theAustralian dollar, andemergent market options, like theBrazilian real, both which have risen more than 20 percent versus thegreenback in2009. Equities markets went down today asDubai shares touched thelowest level since July, andspeculations that low borrowing costs throughout theworld may create anew asset bubble brought risk aversion tothehighest levels this month, asspeculations suggest that thebearish days forthegreenback may be ending, since odds that interest rates can be hiked bythe
any time sooner than previously expected emerged after Friday’s positive report.
Arisk aversion wave started intheMiddle East combined with anew positive sentiment towards theinterest rate outlook intheU.S. is fueling thegreenback’s appeal intrading markets inaway it hasn’t been formonths, andthedollar may advance further if such sentiment gains confidence among traders.
EUR/USD traded at1.4806 asof11:15 GMT from anopening rate of1.4877 yesterday. AUD/USD traded at0.9084 from 0.9136.