Bullion prices saw a modest recovery Thursday as Chinese officials at
the G8 made renewed criticism of the US dollars dominance as a reserve
currency. EUR/USD rallied to 1.4072 at one point while the DXY closed
the day down 0.7% with commodities as a whole gaining with the CRB
Index up 1.4%
An extremely bullish day for the equity markets pushed investors back
to riskier assets and away from the safe haven USD and JPY, causing
them to plummet against their riskier counterparts. The rally in
equities along with a weak Dollar has also helped push Oil prices above
$73 for the first time in over a week.
Unpopular Japanese Prime Minister
Taro Aso may face a struggle to keep his job after his ruling
bloc was soundly defeated in a weekend Tokyo election seen as a
bellwether for a national poll to be held within three months.