this shit is unreal. i tried to catch the knife at 1.3850 and now i am very happy that i bailed out at around 1.36. i have no clue what is going on - ok redemptions, stop losses, taking losses on usd portfolios, funding needs etc but almost 20% in the world reserve currency in such a short time? give me a brake. is it possible that latam piles into usd again? but they never put savings into their currencies in the first place... europeans will have no relief from falling crude prices while the only working sector in us (export) will slow in 2009. asians will buy into energy sector for fire sale prices with dollars from their reserves - it really is a war.
No correlation I see but the whole freezing up of the credit system that has led to dollar strength is being unwound. The dollar is ignoring this at the moment.
TED spread Difference between US Treasury bill rate and Eurodollar rate; used by some traders as a measure of investor/trader anxiety or credit quality Description according to Bloomberg. Could be used, possibly, as an indicator.
Right, so it could be a leading indicator for a reverse (or at least retrace) of this latest dollar rally? It's hard to keep up, is this an unwind of previous dollar selling or a dollar rally....
Try overlaying something to see if there's any correlation. Does is lead? Does it lag? How does it help?
Working on it. I'll start up another PC and try some charts. Always good exercise, regardless of the results.
Found this link... http://www.thebigmoney.com/articles/explainer/2008/10/09/dont-watch-dow (God I'm bored, it's days like this I wish I wasn't a daytrading scalper! )