!.4000 is just a fond memory and huge support in cable lies in a zone between 1.7420 and 1.7470. The dollar remains a safe-haven against the present backdrop of a slowing global economy, a role it is reassuming after losing that status over the last five years. Money continues to be repatriated into the US as Joe Six Pack sells his Shaighai “B” shares, his Brazilian ethanol stocks and Russian oil shares.More and more are being shaken out of yesterday’s trends (or the trend from late 2007/early 2008).
The 1.3665 high from 2004 is now the target for dollar bulls. EUR/JPY looks likely to remain offered near-term as financial sector turmoil plays havoc with global share markets. Chinese selling in the low 107.90s capped USD/JPY in New York trading.
