Thankfully for the US Dollar, the week has ended in Asia, where the Greenback has endured an unmerciful pummeling at the hands of just about every other global currency. The sparks that ignited the dollar selloff in the NY session were pretty much two fold; worse than expected unemployment claims, and the S&P putting the UK debt rating on notice that its AAA credit rating could be cut, thus causing many to surmise that the US could be next. Now the only question is what will help to brace the Dollar freefall…USD/JPY opened close to 94.40 and dropped to a subsequent two month low of 93.88 as Japan’s Finance Minister stated that they are not thinking of FX intervention. EUR/USD broke above 1.3955, tapping a high in that pair that has not been seen since January 2nd of this year. GBP/USD broke through 1.58970, that level a high not seen since November of 2008, AUD/USD hitting a pinnacle of 0.7821, a level not witnessed since October 2008, and the Kiwi Dollar, flying up to 0.6175 is a level as well a level not seen since late 2008. I think you get the picture here, the Dollar is faltering. With a long holiday weekend ahead in the US you can expect to see a good deal of squaring up prior to the weekend in these dubious times for the Greenback. Have a nice weekend. Full text »
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