Can we get an update on the EURUSD, portefeuille?
Let's try this again....
From November 3:Uncertainty removed, dollar rises, stocks fall
The Fed announcement should remove some uncertainty from the dollar and it should rise a bit. The QE2 was already baked in with whisper numbers going around of anywhere from $250B to $2T. That's uncertainty. $75B per month is much less uncertain.
So now the focus will be off of QE2 and the elections which pretty much went as expected. After a while we'll go back to focusing on the PIIGS or terrorists or Chinese problems (what???!!!! China doesn't have any problems - only here in the lazy, stupid US, right?), and that will help the dollar. We also now know that we won't have any more "stimulus" where the Congress takes a freshly printed batch and hands it out the by truckload to their friends and supporters. Basically the dollar took its beating and now it's probably somebody elses turn.
So what does that mean for stocks? Well, a lot of the recent rally was on the expectation of a weaker dollar due to QE2 and I think they probably overshot. The dollar will be more resilient than some are claiming for the reasons mentioned above, and it will be negative for stocks.
I'm not going all doom and gloom here, but I'd keep some powder dry to buy the stocks you want when they go on sale.
On November 03, 2010 at 3:08 PM, portefeuille (99.94)
dollar rises, stocks fall
or maybe not. EURUSD just made a "multi-month high".
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On November 03, 2010 at 3:10 PM, portefeuille (99.94)
EURUSD just made a "multi-month high".
at around 1.4183 at around 2:17 pm ET.