Dollar Eases as Stocks Surge- How Long Can it Last?

The greenback was weaker at the close of North American trade today with the Dow Jones FXCM Dollar Index (Ticker: USDollar) sliding 0.57% on the session. The losses come on the back of a stellar performance in US equities that saw the Dow, the S&P, and the NASDAQ surge 3.95%, 4.63%, and 4.69% respectively. A slight drop in weekly jobless claims coupled with strong earnings temporarily eased concerns about an imminent dip back into recession. As mentioned in yesterday’s USD Trading Today report, a significant pickup in risk appetite saw the dollar come off as traders dumped the greenback in favor of higher yielding risk assets. However it may be too soon to tell if markets have bottomed and despite today’s rally sentiment remains fragile ahead of economic data out of the US tomorrow.