Category: US Dollar
The analysis published under this category are as follows.Tuesday, August 06, 2013
U.S. Dollar - A Diamond in the Rough? / Currencies / US Dollar
Today I want to take an in depth look at the US dollar as it is so important to the overall big picture regarding the deflationary outlook that appears to be headed our way. There are just two pieces of the puzzle that need to come into focus and one is a strong US dollar and the other is a weak oil price. Everything else seems to be lining up. I have many different charts for the US dollar that are showing us nothing is broken and basically this consolidation area is still developing.
Lets start with a daily chart for the US dollar that I showed you a while back that shows an expanding triangle forming. Notice the brown shaded support and resistance zone that is made off the top of the blue 5 point triangle reversal pattern just below. As you can see this expanding triangle has been getting bigger so has the volatility been increasing. This is volatility to the max.
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Tuesday, July 30, 2013
Concerned about the U.S. Dollar? How to Manage Dollar Risk / Commodities / US Dollar
Are you concerned about the U.S. dollar? Are these concerns justified? If so, what do you do about it?
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Tuesday, July 23, 2013
USD Index Could Find A Support Around 82.00 / Currencies / US Dollar
The USD Index has moved out of wave B range yesterday so prices are now already in wave C, final leg of a three wave decline. As such, traders must be aware of a trend reversal, especially if we consider that move out of a triangle is final within the larger structure. From a confirmation point of view we need an impulsive rally back through 83.15 to turn bullish on the buck.
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Wednesday, July 17, 2013
Frustrations of a Portfolio Manager: Why I Sell the U.S. Dollar / Currencies / US Dollar
Markets are meant to exert the maximum amount of frustration on investors; indeed, the markets have lived up to their side of the bargain. To survive and possibly thrive in the business, portfolio managers need to be a special breed. This newsletter is a bit different from our typical analysis in that I provide insight as to how I approach the markets, what makes me get up in the morning, and how you can get the most out of your portfolio manager.
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Thursday, July 11, 2013
Major Bank Makes A Freudian Slip About The U.S. Dollar / Currencies / US Dollar
The cognitive dissonance about the dollar never fails to amaze me. People know in their bones that their dollars will be worth a lot less in the future...yet they continue to trust and cling to the dollar as a store of value. They invest in things denominated in dollars that pay interest well below the rate of inflation. Or they go for all out gambling in the stock market to have a hope of outpacing inflation enough to build a tiny bit of wealth to leave to their grandkids.
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Wednesday, July 03, 2013
Why the Rising U.S. Dollar is Still Doomed to Crash / Currencies / US Dollar
David Zeiler writes: Many have wondered - and rightly so - why the U.S. dollar is rising even though the U.S. Federal Reserve has done just about everything possible to debase the currency over the past five years.
Over the past two years, the U.S. Dollar index, which measures the dollar against a basket of major world currencies, is up by more than 12.6%.
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Tuesday, June 11, 2013
U.S. Dollar At Risk? Case for Profiting from Managing Currency Risk / Currencies / US Dollar
The “cleanest” dirty shirt, the U.S. dollar, is down versus the euro so far this year; and was down last year. Yet, S&P, in upgrading the credit outlook of the U.S., cites U.S. dollar strength. If this is a strong dollar environment, are investors prepared for a weak one? With plenty of dirty laundry in the world, we ponder how investors might be able to profit from actively managing currency risk.
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Tuesday, June 04, 2013
Sell the U.S. Dollar? Case for Hard Currencies / Currencies / US Dollar
The Fed’s “tapering,” the dollar’s up, bonds are down. Is this time to bet on the greenback, or to diversify out of the dollar? We believe the dollar may not only have gotten ahead of itself, it also rallied for the wrong reasons. Only the future will tell whether this is an opportunity to sell the dollar, but we can look at risks and opportunities presented.
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Thursday, May 30, 2013
The Rise and Fall of the U.S. Dollar / Politics / US Dollar
Over the last century America’s money—the dollar—has come to dominate the global monetary system. It is used not just by Americans, but in other countries, in the global black market, and by importers and exporters. And it is the primary reserve currency for central banks. This status is what Barry Eichengreen calls an “exorbitant privilege,” because it confers numerous benefits to individuals, companies, and governments. Collectively, it also confers the ability for Americans to consume beyond our ability to produce.
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Monday, May 20, 2013
The Feds Are Worried About the U.S. Dollar / Politics / US Dollar
Over the past month there has been a statistically improbable concurrence of events that can only be explained as a conspiracy to protect the dollar from the Federal Reserve’s policy of Quantitative Easing (QE).
Quantitative Easing is the term given to the Federal Reserve’s policy of printing 1,000 billion new dollars annually in order to finance the US budget deficit by purchasing US Treasury bonds and to keep the prices high of debt-related derivatives on the “banks too big to fail” (BTBF) balance sheets by purchasing mortgage-backed derivatives. Without QE, interest rates would be much higher, and values on the banks’ balance sheets would be much lower.
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Friday, May 17, 2013
US Dollar Ends Another 9 Year Down Cycle / Currencies / US Dollar
Recent rallies in Non-USD currencies resulting from poor US data have not lasted long. And those rallies resulting from strong US figures via the indirect effect of rallying equities (risk-on) have not lasted either. Broadening pro-USD sentiment may stay for longer than we had thought as the US dollar index has exited from another 9-year down cycle.
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Friday, May 17, 2013
Dollar Crisis, the Coming Collapse of US Global Hegemony / Currencies / US Dollar
Colin Todhunter writes: The US is bankrupt. Yet Uncle Sam continues to stride the world stage and can simply print more money to get by because the dollar is the world's reserve currency. Remove it as the reserve currency, and the US will no longer be able to remain supreme or fund its wars by relying on what would then be a worthless paper currency. Today, more than 60 percent of all foreign currency reserves in the world are in US dollars, and the US will attempt to prevent countries moving off the dollar by any means possible.
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Wednesday, May 15, 2013
Don't Bet Against a Surging U.S. Dollar / Currencies / US Dollar
Ben Gersten writes: In the midst of a brewing currency war, Japan's out-of-control monetary policy has caused the yen to fall to an almost five-year low against the U.S. dollar.
With an economy one-third the size of that of the United States, Japan has committed itself to a fiscal program that's almost double the U.S. Federal Reserve's current $85- billion a month stimulus.
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Wednesday, May 08, 2013
USD Index Forming A Bullish Reversal Pattern / Currencies / US Dollar
The USD index reversed higher last week from 81.32. This appears to be a first impulsive structure that is part of a larger and new bullish cycle for the dollar.Read full article... Read full article...
Wednesday, May 01, 2013
Warning U.S. Dollar Collapse Underway, Massive Shortages in Gold and Silver / Currencies / US Dollar
I've been pointing out for several months now that the recent rally in the dollar was a mirage, an illusion generated by the yen, euro, pound, and Canadian dollar all dropping into yearly, or intermediate cycle lows together. This selling pressure in the four major currencies that make up the dollar index spawned what looked like a strong dollar.
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Wednesday, May 01, 2013
The Rising U.S. Dollar Myth / Currencies / US Dollar
Year-to-date, the U.S. dollar is up; does that mean we are in a rising dollar environment? Or is it an opportunity to diversify out of the greenback?
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Sunday, April 28, 2013
GBP/USD Corrective Rally Could Extend To 1.56 / Currencies / US Dollar
The GBP/USD finally broke higher on Thursday, after a recent unsuccessful push through the lower support line connected from early March lows. Notice that the pair closed well above 1.5407 trend-line on Thursday, which sets a stage for a new impulsive rally, now towards the 1.5500/1.5600 area.
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Friday, April 19, 2013
U.S. Dollar and Assets - America’s ‘Exorbitant’ Privilege Will Continue / Currencies / US Dollar
In July 1944, delegates from 44 nations met at Bretton Woods, New Hampshire - the United Nations Monetary and Financial Conference - and agreed to “peg” their currencies to the U.S. dollar, the only currency strong enough to meet the rising demands for international currency transactions.
Member nations were required to establish a parity of their national currencies in terms of the US dollar, the "peg", and to maintain exchange rates within plus or minus one percent of parity, the "band."
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Wednesday, April 17, 2013
U.S. Dollar DownTrend Confirmed / Currencies / US Dollar
Just another quick post tonight. As I have been saying for over a year now, the dollar will not make new highs, and it will collapse as the consequences of QE infinity ultimately take their toll.
Today the dollar confirmed that an intermediate degree decline has begun by closing strongly below the previous daily cycle low. A new pattern of lower lows and lower highs has now begun. (Although the dollar is due for a bounce sometime soon, but it should fail to make new highs and quickly continue the pattern of lower lows and lower highs.)
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Tuesday, March 26, 2013
Say Goodbye to the Purchasing Power of the Dollar - Bernanke Goes to Crazytown / Currencies / US Dollar
On a long solo car trip last week, I listened to several podcasts to pass the time. One was a classic: The Invention of Money, originally released by NPR's Planet Money team back in January of 2011. I highly recommend listening (or re-listening) to it in full.
The podcast is an effective reminder of how any currency in a monetary system is a fabricated construct. A simpler way to explain this is to say it has value simply because we believe it does.
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