Currency comment 5/15

The U.S. dollar fell modestly on Monday. The biggest beneficiaries of the dollar weakness were the commodity dollars – Canadian dollar and Australian dollar.  The Euro FX also gained.  The main factor in the move lower for the dollar has been the multi-day rally in crude oil.  U.S. stock indices were again higher into record territory.  Gold has seen a two day rally from an extremely “over sold” condition after weeks of weakness.

The VIX continues to trade at two decade lows as traders appear to feel that there is very little risk in markets at this time.