Dollar Rally

Tuesday May 13, 2008

Good Morning:The dollar strengthened overnight as traders speculate that the Fed may signal that further interest rate reductions will pause due to rising inflation.

European Equity markets lost ground as financial companies continue to be concerned over inflation and speculation that central banks will pause from lowering interest rates.

China’s share prices fell after the worst earthquake in over 50 years hit the country yesterday.

US futures are also pointing to a lower opening.

Oil: $124.60

Gold: $880.90

Monday May 12, 2008

Good Morning:

Speculation that the dollars losses were excessive and speculation that the Fed will pause in its interest rate reductions assisted the dollar in strengthening last night.  Also helping the dollar is the negative economic data being reported from Europe and Asia.

China hiked bank reserve requirements for the fourth time this year by 50bp to 16.5% to help stem inflation.