Stocks Drop as Bond Investigation Widens, Dollar Resuming Up Trend

[Forex-Outlook]

Dollar and yen are firmer in US session as stocks weaken again on news that investigators are widening the probe on companies misled investors about their role in mortgage-bond deals. The preliminary criminal probe conducted by federal prosecutors now includes up to eight firms including J.P. Morgan Chase, Citigroup, Deutsche Bank and UBS. The are also some concerns on the job markets as initial jobless claims failed to drop noticeably at 444k while continuing claims unexpected rose unexpectedly, climbing by 12k to 4.62m. DOW reversed earlier gain and is closed below 10800 level at . Meanwhile, crude oil breached 74 level to as low as 73.62. Dollar index breached 85.25 high and is trying to resume medium term up trend.

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