Dollar Bears May Be Overreaching

A run on the dollar is under way. While momentum suggests there is scope for additional near-term losses, the risk is the dollar bears are getting ahead of themselves.

Rather than jump aboard what appears to be a southbound dollar express, traders might be better advised to take some profits and wait for the next train.

In London trading, the dollar was recently trading at 115.75 yen vs. 116.30 yen late Thursday, while the euro traded above $1.30 for the first time since April 2005 and was recently at $1.3088. ...