Strong S&P/Weak Dollar Divergence Over?

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

  1. 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


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


    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.