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Dollar Dust Settles- Retail Sales and Automakers Now Take Center Stage

Published 12/31/2000, 07:00 PM
Updated 12/12/2008, 07:45 AM

After an Asian session that got hit by the news that the U.S. Automakers may not receive anything in their Santa Stocking this year, the dollar stabilized and steadied itself for what may be a huge session of Wall Street trade. The news breaking, at around 23:00 EST on Thursday created a big initial run on the dollar, that although reversed, has left as many questions as answers.

In the previous session we had seen oil push to record one day moves, and equity markets travel in the opposite direction, as well as seeing some heavy dollar selling. That may now be reversed as the markets look for relative safety in U.S. bonds and Treasuries until the aftermath of the Automaker saga has passed.

The four hour charts are back to containing the major pairs, and Friday may just as easily reverse the major gains, as easily as it could add to them. The fundamentals show that the last session of the week may see dollar buying, the technicals are now at an impass. A lot will rely on sentiment, and right now that really is hanging in the balance.

Long aussie and euro still look on, short cable and long cad are the possible dollar strength plays. We will update once we see Wall Street get underway. 

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