The appetite for risk has been dominating since the Minutes of the FOMC meeting confirmed the market’s expectations that the Fed is ready to ease. So, the dollar resumed its decline (except versus the pound), but at a mild pace. The Asia/Pacific stock markets followed the US stock markets higher, the European bourses are trading higher, and the gold and oil are up as well. The US indexes are up large in pre-open market.
The short-term outlook is sideways to slightly bullish for most of the major currencies. The medium-term outlook for the foreign currency futures is still bullish and my model is long on the Dow Jones CME FX$INDEX and all of the major currencies.
