USD

The Dollar weakened on Friday as PPI numbers fell short of market expectations. The same traders flocking to the dollar a mere 24h before (Thursday’s 1.3882 in EURUSD a 1 year low) were offloading their dollar trades amid fears of an ensuing financial collapse in wall street. The dollar’s recent strength on the back of risk aversion subsided as news of Lehman Brothers in urgent talks for a takeover by Barclays or Bank of America hit the news wires. The Dollar has recently been impervious to bad news and negative market sentiment; one wonders if this is finally a kink in the dollar’s armor and an end to an impressive bull market these past 2 months.