In early on morn merchandise today, nosotros run into the the U.S. of A. dollar suspension to novel lows against the euro (top chart), on the heels of the before downside suspension vs. the Aussie dollar (bottom chart). That has contributed to a elevator inwards petroleum as well as gilt prices, a rally inwards global stock markets, as well as detail forcefulness amid the shares of raw materials companies (see here).
Why is this potentially important?
The passing of Labor Day has traditionally signaled the terminate of summertime as well as the dull summertime trade. Institutional traders are dorsum from their holidays as well as are looking to seat coin to move to complete their years amongst a flourish. Money managers that accept underperformed marketplace position averages experience detail press to seat their uppercase to work.
The intermarket themes as well as trends that nosotros run into coming out of this post-holiday calendar week powerfulness give a clue equally to *how* this uppercase volition hold out deployed. So far, it's non bullish for the the U.S. of A. dollar.
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