Tim Fox Market Quotations

Yesterday's move was exaggerated. Markets have been pricing in more of a move to 5.25 percent and that's given the dollar some support.

Markets are looking again to challenge the lows of the year in euro/dollar, which were approached yesterday. People are tempted to look at those levels again.

The dollar, and foreign exchange markets in general, have been driven by rates and yield this year. As we go into 2006, we see a lot of that yield advantage intact and U.S. rates rising more.

Positioning is against the euro. As we get into the weekend, the markets may start to pare back some of that pessimism. The market is a bit short of euros. There could be some short covering, which could benefit the single currency.

A crucial aspect is going to be the Nikkei. The Nikkei has been driving the yen higher, trying to latch on to the strength of the Japanese stock market before it actually gets going is what's drawing money back home to some extent and also from overseas investors.

A crucial aspect is going to be the Nikkei, ... The Nikkei has been driving the yen higher, trying to latch on to the strength of the Japanese stock market before it actually gets going is what's drawing money back home to some extent and also from overseas investors.

The market will take Olson's comments as fairly dollar supportive. The Fed may have to be prepared to pause or even cut next year though.