The dollar has played a key role in the market action of the past two days, with dollar-denominated assets exhibiting a strong inverse relationship with the currency. Technical levels have also played a role in the end-of-week action. After declining as much as 2% in early going, the market was able to erase huge losses. Volatility could remain elevated next week as the market continues to digest macroeconomic factors and growing uncertainty.
Saturday, February 6, 2010
Found support
The dollar has played a key role in the market action of the past two days, with dollar-denominated assets exhibiting a strong inverse relationship with the currency. Technical levels have also played a role in the end-of-week action. After declining as much as 2% in early going, the market was able to erase huge losses. Volatility could remain elevated next week as the market continues to digest macroeconomic factors and growing uncertainty.
