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Volatility Trading Digest – Mighty Dollar

Volatility Trading Digest – Mighty Dollar

Last weeks’ media chatter about sequestration and the anticipated effects of reduced spending seemed to be overlooking the dollar as it increased against the currencies that make up the US Dollar Index, especially Friday, the first day of implementation. If exchange rates move primarily in response to news that alters expectations about the future economic environment, as theory proposes, then less government spending is good for the economy.

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