Dollar Index And Global Markets Get Aligned

Dollar Index
This week has been one of consolidation of Usd buying, post-equity Goldman drop, and also one those rare times when bad or good news does not equate directly to Usd strength.
Bullish numbers out of Europe pushed the dollar index below the 81.00 area, and if equities continue to stay in the green, the next target is in the 80.00 zone it would seem. Favor Straddle-Usd plays for the moment.

S&P Futures
Investors had a sudden change in sentiment overnight, and started buying equities and high yielding assets in reaction to the recent bout of equity selling. This was seen in the S/P futures as well as in the regional cash markets, favoring quantity over safety.
Equity momentum is expected to remain positive over the upcoming sessions. 12-month 96% correlation to Aud and Cad.

Crude Oil
Investors jumped into long commodity positions as soon as the Usd showed signs of weakness. Among the main financial markets, crude oil had the best return in intra-day trade, and outpacing equity returns.
The sell-off seen over the last three days of trading could allow crude oil to reverse back above the $87.00 area.

Gold Bullion
It seems that investors have given up valuing Gold depending on the market aversion to risk. Instead, the precious metal dropped strongly over the last few sessions of trading in reaction to the moves seen in the currency market.
Now that the Usd is giving up ground, gold has started recovering at the same fast pace. 12-month 85% correlation to dollar index. 12-month 85% correlation to dollar index.

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