Category: US Dollar
The analysis published under this category are as follows.Thursday, January 22, 2015
The U.S. Dollar Has Peaked / Currencies / US Dollar
Dr. Steve Sjuggerud writes: "Today may be the very top in the U.S. dollar," I told Liz Claman on Fox Business' "Countdown to the Closing Bell" last Friday.
The U.S. dollar has soared over the last several months. And it has now become a crowded trade. I told Liz that no one expects the dollar to fall today... but that's what I'm betting on.
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Thursday, January 08, 2015
Behold the US Dollar Bull Market / Currencies / US Dollar
The purpose of this article is to illustrate the continuous strength of the US Dollar from back in September 2014 and how we are not even at the half way point yet for this current move. The US Dollar Index is thought to be in a bull market for another 5-7 years, so as analysis will show today, the top in the US Dollar appears to be setting up for mid-term top this coming September, rather than November as previously reported.
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Sunday, December 28, 2014
Crude Oil and U.S. Dollar Index Technical Analysis / Currencies / US Dollar
Oil
Oil has continued to crash throughout December but I suspect there is now only marginally lower to go with the final low imminent.
Let’s investigate using the monthly and daily charts.
Thursday, December 18, 2014
John Williams: A Downhill Run for the U.S. Dollar in 2015 / Currencies / US Dollar
Rosy GDP numbers may have cheered the masses, but John Williams of ShadowStats.com says we're a long way from prosperity. In this interview with The Gold Report, Williams debunks the myth of economic recovery and warns that we still have serious debts to settle. That is why he is recommending caution in 2015 to preserve purchasing power and maintain your standard of living.
The Gold Report: Your hyperinflation report predicted 2014 would be dominated by economic distress, financial crisis and panics. Were you surprised by the performance of the economy this year?
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Tuesday, December 16, 2014
U.S. Dollar Trend Forecast 2015 - Video / Currencies / US Dollar
Will the US Dollar collapse in 2015? Or will the bull market soar to new highs? Find out in this video analysis that concludes in a detailed trend forecast.
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Sunday, December 14, 2014
U.S. Dollar Collapse? USD Index Trend Forecast 2015 / Currencies / US Dollar
For as many years as I can remember and 2014 has been no exception, the most vocal mantra that can often be heard is one of warnings of an always imminent U.S. Dollar collapse as a consequence of a myriad of highly convincing arguments such as a soaring debt mountain, deficit, rampant money printing, demographics, rise of China, death of the petro-dollar etc.. However the dollar trend of recent years shows that the dollar in actual fact is little changed, where even the recent breakout only put the USD barely 4% outside of its multi-year trading trading range of between 85 to 79 and still within its longer-term trading range of 89 to 75.
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Friday, December 12, 2014
Spare U.S. Dollars / Currencies / US Dollar
Last week I wrote that contrary to the prevailing mood US dollar strength could reverse at any time. This week I look at another aspect of the dollar, which almost certainly will become a significant source of supply: a global shift out of it by foreign holders.
As well as multinational corporations that account in dollars, there are non-US entities that use dollars purely for trade. And so long as governments intervene in currency markets, governments end up with those trade dollars in their foreign reserves. Some of these governments are now pushing hard to replace the dollar, having seen its debasement, which is beyond their control. This has upset nations like China, and that is before we speculate about any geopolitical angle.
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Friday, December 12, 2014
USD Strength Could Trigger Emerging Market Crisis Sending it Even Higher / Currencies / US Dollar
It seems impossible for the USD to move in any right direction for emerging markets with it blamed for causing inflation when it falls and now it’s the culprit for a potential crisis in some developing countries which have borrowed in the US currency. The bad news for them is that the greenback is likely to carry on strengthening.
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Friday, December 12, 2014
How the Rising U.S. Dollar Could Trigger the Next Global Financial Crisis / Currencies / US Dollar
This week’s Outside the Box continues with a theme that I and my colleague Worth Wray have been hammering on for some time: the very real potential for a rising dollar to trigger the next global financial crisis.
We are concerned about the consequences of multi-speed economic growth around the world and the growing divergence between major central banks. In our opinion, if these trends persist, they likely mean (1) a major US dollar rally, (2) a rapid unwind of QE-induced capital flows to emerging markets, (3) a hard slide in fragile emerging-market and commodity-exporter currencies, and (4) financial shocks capable of ushering in a new global financial crisis.
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Thursday, December 11, 2014
U.S. Dollar Long/Short Position / Currencies / US Dollar
In the context of the gold price, many relate the net long/short position in the US.$ as an influence on the gold price. To a small extent this may be true, but not, in our opinion, to an extent that actually affects the gold price.
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Saturday, December 06, 2014
Current US Dollar Trend Defined / Currencies / US Dollar
Performance of the US Dollar Index has been stellar and is developing an interesting pattern that once complete around mid to late March 2015 will indicate the final upper target expected around August 2015. This report has a lot of technical information and might be considered “rather dry” to most, but I encourage the reader to wade through this, chew on it and digest it. For those who want the direct forecast up front, avoid commodities and go long S&P 500 type of Exchange Traded Funds. By simply being conservative, 10-15% can still be made between now and August 2015.
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Thursday, December 04, 2014
US Dollar Up/Down Trends Lasts 6-10 Years and Have Significant % Moves / Currencies / US Dollar
The index used, Trade Weighted U.S. Dollar Index: Major Currencies, is published by St. Louis Fed and is very highly correlated with DXY.
The central banks policies and govt policies, announced and unannounced, and agreements, as in 1980s, play a big role in currency moves. The latest example is Japanese Yen. However, speculators and momentum players (trend followers) are the primary drivers of trends that last several years until extremes, not justified by economic fundamentals, are reached and reversals follow.
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Sunday, November 30, 2014
US Dollar Index and Crude Oil Analysis / Currencies / US Dollar
US Dollar Index
The US dollar has surged in recent months breaking some obvious resistance levels. This has brought out many calls for an even bigger move up. While this is possible, I suspect a big fake out move is in play. Let's investigate.
Firstly, let's begin with the yearly chart of the US dollar index to help put things in perspective.
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Monday, November 24, 2014
What Causes the U.S. Dollar to Move? / Currencies / US Dollar
Understanding the relationship between the U.S. dollar and gold is necessary to successfully invest in gold. However, it is not sufficient, because changes in the USD exchange rates cannot be analyzed outside the economic context: gold, although not officially money, is traded like a currency. Therefore, long-term investors should not analyze the gold market in isolation or confine themselves to observe the U.S. dollar index. The price of gold reflects the complex financial world and hence depends on many factors: the movements of interest rates, inflation or economic growth. The U.S. dollar may rise due to many factors, each time affecting the price of gold in a slightly different way. In other words, if the USD and gold prices have an inverse relationship, then forecasts for gold prices should be prepared while taking into account the expectations of currency movement. To do this, we need to understand the factors driving the greenback.
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Monday, November 24, 2014
All Hail the King U.S. Dollar - Trend Forecast / Currencies / US Dollar
In part two of this Weekend Report I want to take an indepth look at the US dollar as many of the important currencies of the world all seem to be making important moves right now. If that is true then the US dollar is also in the process of making an important move in the opposite direction.
Below is a long term monthly chart for the US dollar that shows black and white candlesticks. In a strong impulse move down you will see a string of back candles all in a row and in a strong impulse move up you will see a string of white candles all in a row. If the US dollar doesn't crash and burn during this last week of trading for November, it will have completed it sixth month in a row of white candles sticks. This is telling us the breakout move from the massive ten year base is underway and is looking healthy. Remember big bases equals a big move and a small base equals a small move. It's all relative.
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Friday, November 14, 2014
The Return of the U.S. Dollar / Currencies / US Dollar
Two years ago, my friend Mohamed El-Erian and I were on the stage at my Strategic Investment Conference. Naturally we were discussing currencies in the global economy, and I asked him about currency wars. He smiled and said to me, “John, we don’t talk about currency wars in polite circles. More like currency disagreements” (or some word to that effect).
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Wednesday, November 12, 2014
The U.S. Dollar’s Crucial Role in the Commodity Cycle / Commodities / US Dollar
The U.S. dollar is falling and it’ll ultimately crash and go down to near zero. Not true… that’s what the gold bugs keep harping on but it’s not true.
This misinformation is very representative of what’s going on in the global economy and it’s almost as bad as the liberal economists and analysts who believe we should just print as much money as necessary to keep the economy growing.
Let’s just start with the truth.
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Sunday, November 09, 2014
Why a Strong U.S. Dollar is the Ultimate Economic Stimulus / Economics / US Dollar
Earlier this year commodities prices were fairly buoyant thanks in part to strong demand in Asia. The strength didn’t last long, however, and by summer weakness was evident in Europe and China. Global growth slowed considerably in the months leading up to October, when oil plunged below $90/barrel for the first time since 2012. Apart from weakening global demand and the growth of energy supplies (thanks to fracking), the strengthening U.S. dollar has accelerated this trend.Read full article... Read full article...
Wednesday, November 05, 2014
Ron Paul Says: Watch the Petrodollar / Currencies / US Dollar
By Nick Giambruno, Senior Editor, InternationalMan.com
The chaos that one day will ensue from our 35-year experiment with worldwide fiat money will require a return to money of real value. We will know that day is approaching when oil-producing countries demand gold, or its equivalent, for their oil rather than dollars or euros. The sooner the better.—Ron Paul
Dr. Paul is referring to the petrodollar system, one of the main pillars that’s been holding up the US dollar’s status as the world’s premier reserve currency since the breakdown of Bretton Woods.
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Friday, October 31, 2014
The End Of An Era: Is The US Petrodollar Under Threat? / Currencies / US Dollar
Recent trade deals and high-level cooperation between Russia and China have set off alarm bells in the West as policymakers and oil and gas executives watch the balance of power in global energy markets shift to the East.
The reasons for the cozier relationship between the two giant powers are, of course, rooted in the Ukraine crisis and subsequent Western sanctions against Russia, combined with China's need to secure long-term energy supplies. However, a consequence of closer economic ties between Russia and China could also mean the beginning of the end of dominance for the U.S. dollar, and that could have a profound impact on energy markets.
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