The DEC13 U.S. Dollar Index is down 8 ticks to 80.23. The USD has defied bulls’ predictions of a rally recently, as the taper has not come as soon as some had expected.
U.S. stocks rose, sending the Standard & Poor’s 500 Index above its record close, as investors weighed the timing of any cuts to Federal Reserve monetary support amid budget negotiations in Washington.
The stock market could use a healthy correction soon, before prices start rising at an unsustainable pace.
The British pound broke to a new high against the U.S. dollar as expected after we identified an end of a corrective retracement at 1.5850.