The dollar vs. the Nasdaq: A trick to click.(Brief Article)

Futures (Cedar Falls, Iowa), May, 2001 by O'Sullivan, Tim

One trick to finding buy and sell signals on the U.S. dollar is to find a correlated indicator of the country's economic condition. Here, we will examine recent correlations between the Nasdaq and the dollar, as the two have tracked -- and at times diverged from -- the U.S. economic condition.

The dollar vs. the Swiss franc (USD/CHF) is the one major currency pair resistant to psychological economic complications. The euro doesn't qualify because of the economic collision course of 12 nations with different macroeconomic policies, different productivity numbers, different inflation, different rates of mad cow infection, etc. The British pound has submerged as a "minor" major, dwarfed by the 12-member Euro organization. The Japanese yen. still very much a major...

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