The US Dollar Soars
The Euro fell to a ten month low as the US Dollar soared in value on Wednesday March 24th 2010. In late New York trading, the Euro was at $1.3324, down from $1.3501 late Tuesday. While it does seem like that big a move, it represents a 1.31% change in value.
As The Money Game blog notes, "If you live in the world of stocks and commodities you might not completely appreciate the magnitude of the 1% move in the dollar index today. But when you consider that many forex traders trade at leverage of 50x-200x just so that they can actually get some action on a typical, today's dollar move is epic."
Toomre Capital Markets LLC ("TCM") could not agree more. What an epic move for one day!!! TCM also wonders how many institutions and investors were hurt today by their "bets" against the value of the US Dollar.