After initally being sold off on the better than expected jobs data, the dollar has rebounded smartly to new highs for the day, chopping up traders. There has been a shapr backing up of US interest rates and the Fed fudns futures has fully discounted a Q1 rate hike. Our weekly thematic piece that will be distributed shortly identifies three factor that will help define the dolalr's bottom: rising interest rates relative to Europe, the dollar responding positively to good news, and techncial reversal patterns.
The next level of support in the euro is seen near $1.4250-60 and $1.6880-90 in cable. The yen is leading the way lower and has broken key trend line drawn off the March and June highs. A close above that trend line which comes in near JPY96.30 will help confirm the break out.
Dollar Reverses Higher, US Rates Spike Higher
![Dollar Reverses Higher, US Rates Spike Higher]()
Reviewed by magonomics
on
August 07, 2009
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