Another day, another $ drop

Another day, another 14 month low in the $ index and record high in gold. This comes even after the Oct German ZEW investor confidence figure in their economy was almost 3 points less than expected and unexpectedly fell from Sept, below forecasted inflation data in France and the UK and a comment from an ECB member that believes there is no reason to change policy now. Assuming a flat opening, the S&P 500 will have fallen to a one month low in gold terms. With this $ backdrop, Fed members Dudley and Kohn speak today and both will likely reiterate that rates will stay low for a while and they are not worried about inflation, even in the face of market signals. The Sept NFIB small business optimism index rose .2 points to the highest since May but the components were mixed. Those that plan to hire fell to a 4 month low but more want to increase cap ex and expand. Those that expect a better economy and higher sales both fell.

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