Professional system trader Art Collins shares his daily biases in the index, bonds and currency futures markets for August 26.

The market's renewed risk aversion expressed through lower global interest rates and equity markets as a result of wide credit spreads have traders and investors beginning to question a broad-based dollar rally.

The greenback was particularly strong against commodity currencies, like the New Zealand dollar, but continued to lose ground against low yielding currencies like the Japanese yen.

The whole United States seems to be following in the direction of Merced, California – epicenter of the housing quake.

A severe U.S. dollar undervaluation is now likely to lead to a substantial improvement of the U.S. Balance of Payments through continued strong export performance.

With the US dollar rising to new multi-month highs against all of its liquid counterparts, skeptical bears will start to point out the fading interest rate outlook for the Fed as a good reason to reevaluate any long-term dollar rallies.

A string of market-moving US and European economic reports are likely to determine the Japanese yen's fate.

Professional system trader Art Collins shares his daily biases in the index, bonds and currency futures markets for August 25.

Yet another crisis confronts us, as we will have to deal with the aftermath of a rather large number of bank failures over the next year, which is likely to overwhelm the ability of the FDIC to insure your bank deposits.

The US dollar staged a solid recovery on Friday, as the dollar index bounced from key trendline support that formerly served as resistance from late 2005–2007.