Speculation continues to swirl this afternoon that BofA will be forced to raise billions more in capital. That, combined with uncertainty over the fate of the first time homebuyers tax credit which has helped stabilize the wobbly US housing market have prompted a rush to avert risk. Selling the greenback has been the number one way to assume risk in the market for many months, so it is only natural that the buck show some strngth while working out this case of the jitters.
Whether it is a mild or chronic case remains to be seen. The onset of risk aversion fever has been sharp and swift, suggesting it could get worse before it gets better. 1.4827 is next support with the market trading now at 1.4864.
