Gold 
”Dollar’s bin Laden bounce proves short lived
The dollar was enjoying its first rally in nine trading days on Monday, bolstered by the perceived blow to global terrorism from the killing of al-Qaeda leader Osama bin Laden.
However, its bounce quickly ebbed after the latest US manufacturing data showed that growth in output had slowed slightly from strong levels, but that export orders hit economic cycle highs as the weak dollar made pricing more competitive.
‘This shows how difficult it is for the dollar to get a sustained lift until the data starts to significantly pull forward US rate expectations,’ said Alan Ruskin at Deutsche Bank.
Immediately after the news of bin Laden’s death, sentiment towards the US and the dollar was lifted, and the currency came off recent lows. Analysts, however, believed the bin Laden-effect would be brief.
A volatile session saw the dollar index — the performance of the US unit against a basket of other currencies — open in Asian trade at 72.99, then climb 0.4 per cent to 73.29 after the announcement of the al-Qaeda leader’s death.
But by late day in New York it was up less than 0.1 per cent, at 72.97, nearing its three-year low reached last week. The dollar’s renewed slide was typical of the currency’s recent reaction to risk, where investors seeking higher yields use the dollar to fund carry trades.”
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