03-19-2009, 06:51 AM
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Confirmed User
Join Date: Mar 2008
Location: London, Saint-Tropez, Bermuda, Moscow
Posts: 5,289
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U.S. Dollar Has Third Biggest One-Day Decline Ever
Quote:
The US Dollar index had its third biggest one-day decline yesterday since daily pricing began back in 1970. After the Fed announced that they will be purchasing US Treasuries and other assets, the Dollar fell sharply and ended the day down 2.69%.
As shown in the one-year chart below, the US Dollar index broke below its 50-day moving average Wednesday after breaking below its short-term uptrend a few days ago. The Dollar is still trading above its longer-term uptrend, but the technical damage done in recent days is not a good sign.
Below we highlight all one-day declines of 2% or more for the US Dollar index, along with the percent change on the following day and over the following week. As shown, the average return over the next day and week has been -0.18% following these big down days in the past.
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http://seekingalpha.com/article/1267...y-decline-ever
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