FX Daily Report : March 28, 2013
GFM Research | Mar 28, 2013 02:03AM ET
The US Dollar Index (DX) continued to gain with and is poised to test 94.20 till it hangs on above 91.80. Unconventional correlation was observed between the Dollar Index and most of the asset classes (especially the benchmark equity index of Dow Industrials (DJIA)) wherein most of the asset classes traded strong despite the greenback strength.
Dow Industrials (DJIA) is trading consistently beyond all time high of 14200-14300, historic high made during October 2007 indicating new rally is under progress but the momentum has run out of gas at 14400 ranges; only monthly close below 13700 would force us to rethink the bull trend.
Historic correlation between DX Vs DJIA suggests the long-term trend is still Dollar bearish till the Dollar Index is not closing above 84.50 on monthly basis though the short term and medium term trends are bullish.
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