Intraday Market Thoughts

 @ibtimes
on January 26 2010 8:10 PM

January 26, 2010 12:44 ET: The EURUSD-USDX correlation is now at a 4-month low of 0.20, falling further from the 0.27 shown in this chart http://chart.ly/ c7ynqh posted 5 days ago. THE IMPLICATIONS of such development suggests USD will likely maintain its strength despite any rebound in equities, while UNLIKELY to post any marked decline during rising equities (hence falling correlation). This also explains the current development on why the USD Index is near its 200-day MA despite stocks rebounding +0.7%.

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