Dollar Rebound Attempt Failed as Risk Aversion Receded Towards the End of the Week Dollar attempted a rebound last week on selloff in risk markets on global slowdown worry but failed towards the end of the week. Even though S&P 500 suffered the largest weekly decline since last December, it pared much loss on Friday with help from quarter end window dressing buying. Dollar index has indeed closed the week lower at 79.345. Meanwhile, EUR/USD now looks set to take out 1.33 level this week and could be heading back to 1.35. We'd maintain that equities remain vulnerable to a deeper pull back and that should exert certain pressure on commodity currencies. European majors could benefit more from risk aversion than dollar this time as European/commodity crosses short positions unwind but that's far from being certain. Yen would possibly rebound further with help from repatriation. Dollar would be mixed. So, we'd favor long in European/commodity crosses and short in commodity/yen crosses in near term. Full Report Here... | 
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