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Moral hazard for the dollar, impulsive move in gold

15.07.08

In this week's report, we look at recent events at Freddie Mac and Fannie Mae and how this may play out for dollar traders. We also return to the gold market, which has been very quiet in recent months, but is now showing potentially major impulsive action.

The currency week has been dominated by the events at Freddie Mac and Fannie, with traders trying to ascertain what the risks of the Fed bailing out the GSEs will be.

We have been following oil closely for some weeks, but gold is now back in the spotlight on a surge in safe haven buying. We pointed out the fact that it had not really fallen away when the dollar picked up a month or so back, and now what we are seeing is clear impulsive action for the first time since the big decline at the turn of the yea

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