Developments

As a weak stock market could be a cue to buy dollars, a strong stock market can be a dollar killer. My USD/CAD and USD/EUR positions pulled back as the S&P moved higher. The USD/CAD was due for a move dow; I was expecting it and I had tighted my stops just last night. The AUD/USD is showing some relative weakness, however, even though their retail sales were better than expected. More investigation is required about the Aussie.

Apparently the Euro is correlated to higher makrets; I'll have to look at this. (Bloomberg)