Remember on Friday, the only thing that stopped the 315 point sell off in the Dow was the closing bell. Then overnight on Sunday the Nikkei plunges over 600 points which places it back under the 13,000 level.
Stock futures are already predicting a lower opening. So look for the markets to take another beating today.
This means that EUR/JPY, EUR/CHF, GBP/JPY, GBP/CHF will likely be weighed down again today. Those that have sold short these pairs recently have done really well.
This means the Japanese yen and Swiss franc will likely be today's winners once again.
However, besides these...the Euro and the Aussie dollar seem to be holding up better than the rest. And when I say that...I'm really referring to the euro vs. the U.S. dollar and the Aussie dollar vs. the U.S. dollar.
Wondering which of the two is the strongest between the Euro and the Aussie dollar? Then look to the EUR/AUD pair to see which one is strengthening. Right now, it's the euro (over the past couple of days).
By the way, gold just took out a new "all time high" of $984 earlier this morning. It's hard to believe that it's only $16 away from hitting $1,000 an ounce. Wow!
Sean Hyman
Editor/Trader
www.money-trader.com
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