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hardnox
Advisor

Don't know if it matters

but the dollar looks to be close to confirming a new leg lower after breaking support and consolidating for a while.

 

As far as the argument that repatriation of corporate funds held abroad was going to firm it, those funds were already here, as much as they were anywhere. The tax man just gets a tiny nibble off them now as they get moved into a different column on the ledger. Could actually be some effect from the unwinding of swaps and cross hedges that gave access to those funds.

 

My guess is that comms will only get a small bit of help here- perhaps more later on if the DX moves down into the target area around 85 and starts to be a story.

 

The only markets that tend to get an instant bid off dollar moves are oil and gold.

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elcheapo
Veteran Advisor

Re: Don't know if it matters

Remember how all the market guru's told us
Exports are very important, but a strong dollar
We're curtailing exports ??

Saw a very good week last week in corn exports
But really no big move price wise, other than
Perhaps down
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hardnox
Advisor

Re: Don't know if it matters

Well, I guess it matters- don't know what the excuse sheets will say but I'll give the currencies credit for a little strength today.

 

As I'd expected, once 90 in DXH gave way it was a quick one day trip to 89- we're currently trading a bit under that. When currencies trend, you don't want to get in their way- next stop looks to be in the 85 area and that would be supportive to grains.

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