Thursday, September 25, 2008

The Dollar and the short term discount rate

The chart on top is of the $USD Dollar index, the one on the bottom is of the short term discount rate.
The Dollar did bounce on support, and is now stuck in a tight channel.
The short term discount rate suggest that the $USD Dollar could head lower .....
What if congress agrees to the package ? will that incite investors to buy the Dollar ?
Or that package will be seen as "reason to sell the Dollar ?"

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