Big swings hit the market as the dollar sags

<p>The early US dollar strength is reversing and commodities and value stocks are jumping.</p><p>It's not clear what's behind the reversal but there are some stark moves. The Russell 2000 is up 1.3% with the Nasdaq flat.</p><p>That kind of broadening out is something the bulls wanted to see but it's also quarter-end so there could be flow-related drivers.</p><p>In FX, the dollar has given back some gains and some of that is via commodity currencies and that makes sense as oil catches a bid. USD/CAD is now below where it was before the US GDP and jobless claims data.</p><p>Gold is also reversing after falling to the lowest since May. There's a solid correlation between 5-year US yields and gold but what hasn't changed today is that bond yields are still at the highs of the day, with the 5y up 15 bps.</p>

This article was written by Adam Button at www.forexlive.com.