Commodities carving out a possible bottom sent fixed income investors running for the exits today. Initially, higher bond yields will drive dollar buying in the near term. But our economic recovery is hinged upon this commodity “top”, which should give the Fed some fiscal breathing room. But wait a minute - what if the top is not in? If the commodity top has yet to trade, then coming inflationary pressures and lower equities prices will very likely postpone the US recovery - all USD negative.
I am short at 109.50 with 109.80 stops. (http://www.forex.com)
13.8.08
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