And Now… Dollar Bounce Underway
October 18th, 2010The relevant and recent analysis is: Gold: New Record High, $1388.
Via: Reuters:
The dollar rose against a basket of currencies on Monday and pulled away from a 10-month low, with market players saying the short-covering bounce may have more room to run given the recent build-up of bets against the dollar.
The greenback extended a rebound that started late last week, with the euro retreating further from an eight-month high and the Australian dollar backing off from Friday’s peak above parity that was the highest since it was floated in 1983.
Investors had increased their bets against the dollar in recent weeks on heightened market expectations for the U.S. Federal Reserve to unveil a second round of quantitative easing as early as November. That positioning had pointed to the risk of a short-covering bounce in the dollar.
