Calm before the storm?

- By FX Markets Staff
- @FXMarkets_
- 09 Dec 2002

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Some dollar bears were contemplating turning into bulls after the dollar index eked out a 1% gain and the Standard & Poor’s index increased by 2% over the past several weeks. Market sentiment is shifting, as the US economy appears to have finally lifted itself out of a ‘soft spot’. Investors have regained their appetite for riskier, higher yielding currencies and equities, as concerns about a war in Iraq fade. Is this the start of the dollar’s recovery or merely the calm before Desert Storm II?

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