As the risk trade rallies with the latest phase of Euro miracle hopes, the US dollar index has weakened in its now typical teeter totter relationship this week, testing longer-term support in the 78-80 range. Here is an updated picture below. With the Euro now back at just under 1.29, it seems euphoria is setting up to be clobbered yet again by the reality of unsustainable sovereign budgets and shrinking revenue in the frenzy of austerity demands. We stay tuned.
Source: Cory Venable, CMT, Venable Park Investment Counsel Inc.