November 27, 2009
The U.S. Dollar is climbing sharply higher as global investors dump stocks and commodities on concerns about Dubai World’s debt problems. Fear is racing through the global investment
community, making lower-yielding assets such as the Dollar and the Yen more attractive. The situation in Dubai began to break late Wednesday night and spilled over into Thursday while U.S. markets
were closed for the Thanksgiving holiday.
Investors began to take money out of higher risk assets when the largest corporate entity in Dubai asked creditors for a six-month break on debt repayments of almost $60 billion. This
action by the Dubai corporation is raising concerns that other emerging market entities may be overextended in debt which could lead to even more liquidation.
Financial markets are taking a hit all around the world as traders fear that banks are facing major exposure to Dubai World’s mounting debt issues.
After reaching a high of 1.5144 earlier this week, the December Euro is now in a position to turn the main trend down on the daily chart on a move through 1.4801. Technically, the
…
