Dollar steps lower: The dollar appears to be taking another step down toward our 90 year-end target. The DXY had been trading between 92 and 95 since late July, repeatedly tested 92 until just the other day when the currency began a push through toward 91. The price action suggests the new range may very well be bounded above by 92 and below by 90. It is interesting that the latest push down began shortly before more evidence of deflationary pressures in Europe was released, suggesting the move is more about Euro strength and not about dollar weakness. The sell-off continued against the Pound as prospects for deal with the EU seem to have faded as well. The country with the highest rate of deflation should have the strongest currency and, with the U.S. domestic economy still experiencing 1.5% inflation, the dollar should continue to move lower.