Dollar Up (UUP) Market Up (SPY) Along With OIL (USO)
By David Lipton
March 01, 2010 3:48 PM
March 01, 2010 3:48 PM
Today's trading has presented further evidence the carry trade of long equities (NYSE: SPY)and short the US dollar index (NYSE: UUP) is starting to unravel.
Crude (NYSE: USO)names are trading in tandem with the USD as well, coming off the heels of the Chile quake. As we have seen in the past the USD/USO correlation has been inverse.
It appears the flight to safer currency pairs is also a result of Chile disruption of supply chains. Trader's are still unsure if tomorrow's session will present similar trading, though as Chile begins to come back online they expect the commodity and currency markets to settle.
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