Markets always price for the worse, then row back when it doesn't happen, ... In this case, as soon as Rita was downgraded, the dollar jumped in a relief rally. It's as simple as that.
More Quotes from Robert Rennie:
Whether the minutes will tell us with any great clarity what lies ahead remains to be seen but at least for the moment the market is basically pricing in two more 25 basis points hikes.Robert Rennie
The further that the Fed takes fed funds and the front end of the curve, the more attractive US-dollar-denominated debt will become to Japanese retail investors.
Robert Rennie
There's two things you know about the weather One, you can't stop it and two, you can't predict it. I wouldn't want to be heavily involved in foreign- exchange markets in next 24 hours.
Robert Rennie
Traders have jumped on the headline and people have shouted out China is going to make the currency convertible. China is not going to make the currency convertible they are going to allow domestic investors to invest in foreign markets.
Robert Rennie
Base metals are up suggesting there are good prospects for global growth. The risk of higher inflation from higher oil prices is pushing up gold.
Robert Rennie
Underlying interest rates still remain very supportive for the U.S. dollar.
Robert Rennie
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