Strong S&P/Weak Dollar Divergence Over?

Discussion in 'Forex Trading' started by cstfx, Dec 4, 2009.

  1. cstfx

    cstfx

    With this morning's NFP numbers, figured the dollar would sell off hard, but instead it get's stronger as the S&P firms up too. Euro selling off hard. Is the divergent correlation over? If so, changes how to approach this market.
     
  2. Good question. I was wondering the same.
    We'll see what happens when NY opens.....
     
  3. cstfx

    cstfx

    rate hike worries? Bonds getting hit hard too.
     
  4. just21

    just21

    Now the dollar has stopped going down the stocks test resistance, confused.
     
  5. Perhaps the people who estimate the job loss figures are also traders?
    I can't, in my short memory, remember a figure (nfp) being so far from the estimate.
     
  6. It's absolutely having to do with rate expectations.
     

  7. Agreed. Expectations carry more weight than actions.
    Might be a good time to start re-thinking the trades?
     
  8. cstfx

    cstfx

    Amazing move in the Euro! Could be over reaching tho.
     
  9. Rethinking what trades? I'm done with my adjustment. I've been wanting to go long dollar at the moment of power, and this appears to be it. It could, of course, be a head fake, but it would be the mother of all head fakes at this point. I want to short the hell out of the Aussie.