US dollar index rally stalling, long term trend still down
With all of the fervor over the US dollar index rallying close to 100, a reality check is in order. According to financial media reports the Euro is collapsing, gold is a barbarous relic that’s lust...
View ArticleMarkets mixed ahead of Fed
A little up, a little down. No real certainty to go around. Things are going to be quiet until the big decision day. Economists and market mavens can’t decide whether the Fed will engage in more QE,...
View ArticleUS dollar strength knocking commodities down
An unusually strong jobs report, which saw seniors take the lion’s share of the new jobs, caused an enormous continuation of the recent US dollar rally. The move knocked commodities down, causing the...
View ArticleGold may be closing in on a bear market bottom
As we approach extremes in bearish sentiment, the number of gold ounces promised per contract (on the Comex at least), relative strength and the dollar rallies on the promise of a tightening cycle — I...
View ArticleChina halts, dollar faults, buyers bolt
Storms are brewing. The wind will carry them from the east to the west. Be careful out there. Thursday will be another difficult day in stocks and risky credit markets. The dollar is no longer being...
View ArticleGold’s 2015 performance in various currencies (chart)
The Brazilian Real was walloped and the dollar was clearly a standout winner. Gold’s relative underperformance shows against US dollars that the US dollar is still seen as a safe haven currency. Until...
View ArticleRemember when major currencies used to be stable?
The British pound keeps reminding me that once a reserve currency loses the confidence of its participants, volatility becomes a big problem. Crashing, as it had post-Brexit and most recently during an...
View ArticleA stronger dollar means a weaker everything else
As the dollar surges past 97, toward 100, the rest of the market seems to be catching on that this is a risk off signal. Just about every asset class is selling off today as a result. There’s no single...
View ArticleUSD index testing major support area: 93
Five year / weekly chart: The US dollar index is testing a major support area of 93. Below that is 84-85. Then 79 comes in to view. Break below 93 could be major. Index is very oversold now, so not...
View ArticleUS fiscal policy disappointment to drive dollar lower?
The U.S. gross domestic product report for the second quarter of 2017 confirmed that economic growth accelerated to a 2.6 percent annualized rate from the first quarter’s sluggish 1.2 percent pace....
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