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.
American mutual funds are scouring Europe for bargains, snapping up Dutch oil drillers, French drugmakers and Swiss food producers on speculation the region’s rally is just beginning as the U.S. bull market ages.
Tomorrow morning markets will react to the release of the November unemployment number. This release will be watched very closely as market participants look for clues for when the Fed might taper its $85 billion a month bond buying program.
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.