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Daily OANDA Forex Blog (Nov 20, 2009 at 05:50:55am) — by Dean Popplewell

We are now paying the US government to look after our short term cash. Is that risk aversion or what? For the first time since the financial collapse, US 3-month T-Bills are trading negative! One gets an uneasy double dip feeling in the market, not a ‘jolly’ Christmas present. Whispers and rumors that more European banks are in trouble, the paranoia of keeping global rates too low too long causing new asset bubbles, especially in China, the ‘chosen savior’ has investors checking the emergency landing gear. The real unemployment rate in the US (supposedly around +17.5%) has consumers backing off, hoarding and not helping this ‘jobless recovery’. Smoke and mirrors syndrome and it’s suppose to be thanksgiving next week!

The US$ is stronger in the O/N trading session. Currently it is higher against 14 of the 16 most actively traded currencies in a ‘whippy’ trading range.

Yesterday’s US data received mixed reactions. Initial and continuous claims...