Category: US Dollar
The analysis published under this category are as follows.Thursday, October 14, 2010
U.S. Dollar Cannot Even Hold 5 Day Moving Average / Currencies / US Dollar
Dollar bulls are now showing in the 3% range which is a similar reading to Euro bulls in late spring during the Greece crisis ... the euro was roughly 1.18 to the dollar, and people were talking par (1.00). Now the euro just broke over 1.40.Read full article... Read full article...
Thursday, October 14, 2010
How to Diversify Out Of U.S. Dollars With ETFs / Currencies / US Dollar
Do you pay attention to the currency markets? You’d better, if you want to survive and thrive in these crazy times.
I have to tell you I am NOT a currency expert. For deeper analysis I refer you to my Money and Markets colleague Bryan Rich. I do, however, know a trend when I see one — and right now the trend in the U.S. dollar is down against every major currency.
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Wednesday, October 13, 2010
Fed Slashing the U.S. Dollar, The Economic Future is Ugly / Currencies / US Dollar
The Fed has has hinted that it will launch a second round of quantitative easing (QE) sometime after its November 2 meeting. The anticipated intervention has been widely criticized, but for all the wrong reasons. Fed chairman Ben Bernanke knows that adding another $1 to $1.5 trillion to bulging bank reserves will likely have little effect on aggregate demand. Nor will it lower unemployment now hovering at 9.7%. It will, however, send a message to trading partners (re: China) that the Fed is serious about reducing destabilizing trade imbalances that siphon-off domestic stimulus, increase unemployment and keep the dollar perilously overvalued. In other words, the Fed's action is the first volley in what is likely to be a protracted currency war that leads to the final demise of Bretton Woods 2.
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Tuesday, October 12, 2010
Fed’s Bizarre Tactics Target Weaker U.S. Dollar / Currencies / US Dollar
Is the Federal Reserve (Fed) experiencing a midlife crisis? Ever since Fed Chairman Bernanke gave a speech in Jackson Hole, Fed behavior can be summarized as, well, bizarre. According to Bernanke, the market’s inflation expectations may be too low. He considers three possible remedies:
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Tuesday, October 12, 2010
China’s Plan to Dethrone the U.S. Dollar as Worlds Reserve Currency / Currencies / US Dollar
Don Miller writes: The U.S. dollar is on the way out as the world's top reserve currency. And as Money Morning Chief Investment Strategist Keith Fitz-Gerald predicted more than a year and a half ago, the yuan could be set to replace it.The greenback has served as the world's benchmark reserve currency since the mid-20th century, but soaring deficits and the U.S. Federal Reserve's loose monetary policy have drained the dollar's value.
Tuesday, October 12, 2010
USD Index Trend Forecast Into Mid 2011, U.S. Dollar Collapse (Again)? / Currencies / US Dollar
Following the USD Index peak at 89 in early June 2010, the Dollar has been on a near relentlessly slide to the recent low of 76.90 which represents a 14% fall in just 4 months. The fall in the Dollar has again brought out the perma Dollar collapse proponents who have periodically come out to reiterate that the U.S. Dollar as measured by the USD index is destined to crash and burn which is set against the perma deflationists who continuously propose that DEFLATION will result in the Dollar rallying to new highs as a consequence of debt deleveraging, which again was most prevalent just as the U.S. Dollar peaked. Therefore this in-depth analysis will seek to conclude towards a probable trend forecast for the USD index into Mid 2011 (9 months forward).
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Monday, October 11, 2010
U.S. Dollar Could Rally In Coming Weeks / Currencies / US Dollar
When one side of any market gets crowded, it is time to prepare for a possible reversal. While there are numerous reasons to be bearish on the U.S. dollar long-term, there are some short-to-intermediate-term factors that may cause the dollar to stage a counter-trend rally in the coming weeks. As we monitor the dollar, we must also consider the possible impact on “weak dollar assets” such as gold (GLD), silver (SLV), copper (JJC), oil (USO), agricultural commodities (DBA), Australian dollar (FXA), Canadian dollar (FXC), and emerging markets (EEM).
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Saturday, October 09, 2010
U.S. Dollar in trouble following job’s report / Currencies / US Dollar
An already weak US dollar took another hit early Friday (October 8) morning following the latest report on jobs. According to new Labor Department numbers, 95,000 workers were cut by US employers during the month of September.
The number of new jobless claims was far worse than analysts had predicted. Bloomberg News, for instance, forecasted just 5,000 new job cuts in its survey of economists.
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Thursday, October 07, 2010
U.S. Dollar At Support, Bounce Likely / Currencies / US Dollar
Figure 1 is a weekly chart of the PowerShares DB US Dollar Bull ETF (symbol: UUP).
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Thursday, October 07, 2010
Does a U.S. Dollar Crash Loom? / Currencies / US Dollar
Even if you’re not one who tracks currency values, you just knew the dollar was on the ropes again if you bothered to check your mail box. Whenever the dollar shows any sustained weakness the newsletter publishers will send out bulk mail advertisements with sensational headlines like, “Dollar Crash Looms!” or “The Dollar Will Soon Be Devalued and Replaced.” After receiving two such mailings on the same day last week, it was obvious to me what the investor sentiment was like on the greenback.Read full article... Read full article...
Friday, October 01, 2010
Can Nuclear Power Bolster The Wilting U.S. Dollar ? / Currencies / US Dollar
It could seem surprising to ask this question, but desperate problems call forth innovative remedies - and conventional wisdom has it that Barack Obama’s administration is on the economic ropes. The problem is that un-conventional wisdom says the same thing but comes to the same conclusion along different pathways.
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Friday, October 01, 2010
U.S. Dollar Race to the Bottom / Currencies / US Dollar
Long ago, before economic models developed their current levels of sophistication, it used to be that the goal of a government's economic policy was to bring prosperity to its citizens; in other words, to raise the general level of material comfort, while at the same time reducing the amount of toil required to attain that end.
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Thursday, September 30, 2010
U.S. Dollar Weakens Against Major Currencies / Currencies / US Dollar
The euro, pound and yen are among major currencies that have taken advantage of a weaker dollar again this week. The dollar, already sluggish in lieu of ongoing unemployment concerns, slid further following the Fed’s announcement last week that it plans to buy US Treasuries to effectively infuse cash into the economy.
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Thursday, September 30, 2010
U.S. Dollar is on the Edge / Currencies / US Dollar
Every picture tells a story and the below chart shows the US Dollar heading down the tubes in contrast to the ascendancy of gold prices, silver prices and the unhedged mining companies that comprise the HUI. The USD has dropped from ‘88′ to ‘78′ in 4 months, a fall of 11.40%. Just imagine being a cabinet member of a foreign government with a pile of trade generated dollars on your hands, watching them disintegrate before your eyes!
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Thursday, September 30, 2010
Cram Down the Ultimate $100 Trillion Bailout, U.S. Dollar Value Fast Meltdown Ahead / Currencies / US Dollar
If you've never heard of a "Cram Down", you are about to get a first hand lesson on the receiving end of the biggest one in history. The words "Cram Down" used to be reserved for companies in bankruptcy or smaller venture backed companies that run out of cash and are recapitalized by "cramming down" the equity held by existing shareholders. The only other alternative to closing the doors is to reorganize the ownership structure to attract new capital and keep it in business. Those who don't have the money to play in the next round -- i.e. don't have a money printing press -- will get wiped out . Having personally experienced a number of these unpleasant affairs in various businesses, you are definitely better off giving than receiving a Cram Down.
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Wednesday, September 22, 2010
U.S. Dollar Falls below USD 80, the Currency Crisis Has Begun / Currencies / US Dollar
It's been my position for a while that Bernanke's monetary policy would eventually create a currency crisis in the world’s reserve currency.I warned that crisis would begin as soon as it became apparent the dollar was caught in the grip of the 3 year cycle decline.
Monday, September 20, 2010
For a Clear View of the Dollar’s Pressure Watch the Swiss Franc / Currencies / US Dollar
The Swiss Franc has enjoyed a strong rally against the Dollar spread over many years with a brief correction around the turn of the millennia. Although a small economy compared to the US, it is well known how strong the Swiss economy is and the standard of living is among the highest in the World.
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Saturday, September 18, 2010
Japan Currency Intervenention to Bail Out America / Currencies / US Dollar
This week, after the Japanese yen had surged to a fifteen-year high against the US dollar, the Japanese government decided to intervene in the foreign exchange market. To great fanfare, the Bank of Japan initiated a vigorous campaign to buy US dollars, thereby stemming the rise of the yen and pulling up the greenback. The effects were immediate, with the yen falling an astonishing 3% on the day of the announcement. At a time when American politicians are growing increasingly vocal about China's currency manipulations, Washington was strangely silent on the Japanese move. This was completely overlooked by the hawkeyed media.
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Wednesday, September 15, 2010
Who Owns the U.S. Dollar? / Currencies / US Dollar
At first glance, this would seem like a rather silly, stupid and pointless question. Why, the average person would answer, the American people own it. Or rather, if one had to get more technical, the American government, which is in turn, being a Republic, owned by the people, one in the same.
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Wednesday, September 08, 2010
Elliot Wave Super Cycle, End of the World Deflation Never Had a Chance / Currencies / US Dollar
Lately we've been hearing a lot of talk about Kondratieff cycles, Elliot Wave super cycle, end of the world, deflation, deflation, deflation.
What the deflationists fail to acknowledge is that in a purely fiat monetary system deflation is a choice not an inevitability. To put it in simple terms, if a government is willing to sacrifice its currency there is absolutely no way deflation can take hold in a modern monetary system.
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