Tuesday 25th March
The USD had made gains over the last few days as short covering and slightly better economic news out of the USA prompted position takers to lock in profits made over the last few weeks. However now that we have got over the long Easter weekend some of those short positions are being taken back on although the US currency is still well off its lows of last week. US equities have also risen well over the last few sessions but here again it remains to be seen just how long the markets can hold these levels in the face of probable further bad economic and recessionary news coming from the US in the next few weeks.
Central banks will have breathed a sigh of relief over the last few days as the US dollar rallied but they might yet fret again if the US currency takes a sharp turn to the downside. We continue to keep to the discipline of the trading model and trade the Trends.