Coelacanth

Comments by Plosser and Paulson Send Dollar Higher

I think oil at around $127.00 is helping support the dollar as well today. Didn't hurt that Ericsson & Vodafone had big misses last night too.

In a larger sense....sentiment is changing. Lipsky from the IMF said today "the euro is over-valued relative to medium term fundamentals".

Last night's awful Italian consumer sentiment number is just the start. Look for French consumer sentiment & Italian retail sales to be way off tonight. Given how the strong euro is killing exports in the EU block, a weak Industrial New Orders & German/Euro-Zone PMI advance figures for July aren't out of the quesiton. I expect the German IFO read to come in below consensus as well.

Most if not all the bad news has been priced in to the dollar. The same can't be said for the euro but IMO that's about to change.