The dollar is on a testosterone fueled power slide today but if traders begin to look at related markets they may want to lighten up a bit. Oil is down more than $3 after the OPEC output cut of 2.2 mln barrels per day trading on a $41 handle while US yields have edged off their lows by 5-6 bp to a loft 2.16% in the ten-year sector.
On the wires, German economics minister Glos dismisses a proposal by Deutsche Bank’s chairman that German take bad debts off of banks books. Glos says the government could take stakes in the banks, but only for limited periods as a last resort should the crisis worsen. Sounds like the approach the US and UK took as opposed to the approach taken by Switzerland.
