Wednesday 19th March

Certainly a better last few sessions for the US dollar and global stock markets as the Fed cuts rates again. This cut along with better than expected earnings reports from 2 top investment banks has for now warmed up risk appetite and prompted some short covering of the dollar in currency markets. Activity though has been light overnight as we approach the end of the Japanese financial year and a holiday weekend for most centres.

There is also significant doubt that the latest Fed measures and the present 'feel good' factor for the dollar will last and the model still has the USD firmly in Negative Trends. The yield on the US currency is fast disappearing and for now Germany seems prepared to accept the anti inflation benefits to be derived from a strong Euro.

But whether the USD goes up or down in this business we must always keep the discipline of money management!