Sometimes methinks I'm real thick. How Osama's death served to be a catalyst for stock market gains and USD strength was rather beyond me. Perhaps it was the after-effects of the Royal Wedding, the death of Indian guru Sathya Sai Baba, or the fact that I had a drink too many the night before? Or maybe Osama's brokers were busy liquidating all his USD shorts on news of his passing; now that sounds a lot more logical.
Regardless, a look at the charts seem to suggest that the greenback found a bottom on Monday; for now, of course - we can see into the future as well as said Indian guru. AUDUSD reached a nice round target of 1.10 and change while EURUSD momentarily popped above 1.49. USDJPY is hanging around 81.00 but this pair lives in its own world so nothing significant there. Margins for Silver futures have been increased twice since Friday, and this helped to put the brakes on a market going crazy selling dollars for everything, after Bernanke's blessings to do so. AUDUSD's negative reaction to a seemingly hawkish statement from the RBA after it left rates unchanged certainly said something about the willingness of a market to extend recent rallies.
So all in all it seems like time to look for opportunities to sell stuff against USD, although we know that markets are always the most volatile around tops and bottoms. So caution rules and we're not too bothered about not taking part in this madness for now.
Peace
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