The US dollar now at a 4 1/2 month low.

• The US dollar has now hit a 4 month low and has been declining fairly rapidly since the March 9th, 2009 top when the Dow Jones was around 6500. 
• Pretty much, investor confidence is rising and thoughts of a global economic collapse is now off the table.
• Global investors are now starting to focus a little more on growth again rather than capital preservation, and money is starting to move around to areas that have higher growth potential such as China and India. 
• Risk appetite is starting to get back into the market, but unfortunately it is not yet ready in the US equities market yet.
• Other signs of improvements include:
  • Narrowing of TED spread as shown from my earlier post
  • Sharp drop in VIX
  • LIBOR rates
  • Increasing global demand, indicated in the Baltic Dry index.