Weekly Forex Market Commentary

The dollar encountered unprecedented lack of liquidity last week (as only cable was affected in 1992/1993 and dollar/yen in 1998) as FX took a secondary position behind classic assets.

The dollar encountered unprecedented lack of liquidity last week (as only cable was affected in 1992/1993 and dollar/yen in 1998) as FX took a secondary position behind classic assets. The government didn?t save the day, but the year and probably the decade with an unprecedented operation to remove toxic assets from banks? books and allow them to live and fight another day. There were other complex measures, but the bottom line is that we can re-start living our lives and FX will return to normality in early October. The dollar is facing divergent trading, probably strong against the yen and slightly weak versus the European currencies. Th

GFT