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The Fed Now Finally realising the need for a weaker Dollar according to Saxo.
Saxo refers to a weaker Dollar supporting SP500 companies earnings. [Think our over strong Indices Fakers rally]
My belief that the FED will be working to support the Stock market, rather than stressing for BRIC nations debt repayments.
Technically this is very interesting as we have the Dollar Index & Euro set up in continuation patterns DX up and EURUSD down, so will this pattern break up or will there be more mixed messages from the FED and after a very Doveish message will the next appear markedly less so?
I have attached the EURUSD & the USDSEK [highly correlated to a USDEUR] chart, which both appear at low end of their range, but still for now look like continuation patterns.
USDSEK Weekly chart, [a DollarINDEX or USDEUR would also suffice].
Below it it is the EURUSD, both appear to be in Macro Continuation patterns all be it that the EURUSD has been short term buoyant and the Dollar Short term weak.
Are Saco right we have topped on the dollar strength and we will reverse entirely to longer run USD weakness, or will we merely soon enough see fresh EUR weakness soon enough against the Dollar and the Macro continuation patterns perform.