Despite decent economic data this morning — consumer sentiment and October home price declines — that should keep the dollar under pressure, the greenback reversed course in late morning trading versus the Euro. DJ Newswires pegs the rebound to Moody’s downgrade of the Abu Dhabi Commercial Bank’s credit rating to A1 from Aa3.
Whatever. The dollars now up slightly at $1.4341 per Euro after spending much of the morning in the $1.44 territory. That’s a slight appreciation for the dollar from yesterday’s $1.4378. Futures, too, are pointing to a stronger dollar, with the ICE U.S. Dollar Index futures contract for March up 0.3% at 78.22.
So much for the “Dollar Falls as Risk Appetite Grows” headlines.
Fodder for bull and bear, no doubt. Bloomberg runs a piece quoting pundits Marc Faber and Barton Biggs, who both see a strong U.S. dollar in 2010, up as much as 10%. “I don�t see any reason why we can�t have a further rally in the dollar,” Biggs told BB television, “and a further rally in stocks. And my guess is that the next move in both could be on the order of 10 percent.”