The crosses present a clear picture of risk aversion.  The EURCAD, EURAUD, and EURNZD look constructive while Yen crosses are at risk of slipping lower.  The AUDJPY and NZDJPY are especially vulnerable.

Gold prices have surged in recent months, which some observers claim is a clear warning that inflation will soon turn sharply higher as it did in the late 1970s. However,

Is it a coincidence that the bullish rally behind the capital markets has stalled and threatened a retracement just as the world’s central banks start to confirm their intentions to withdrawal the emergency aid initially put into place to stem a financial  and economic collapse?

How promising is the outlook for growth and expected returns? This is a critical question that has perhaps been glossed over, or in some instances utterly ignored, over the past six months.

Forex options and futures markets paint a decidedly mixed picture for the US Dollar, as traders are increasingly unsure of short-term direction. We had been calling for a major US Dollar turnaround for quite some time now, and the EUR/USD’s sharp initial reversal from $1.50 gave us reason to believe that the Greenback could continue higher.

Correlations between currencies are not arbitrarily developed. They are often born from fundamental commonalities between various pairs, shared traits whose importance can wax or wane with time.