Category: US Dollar
The analysis published under this category are as follows.Thursday, July 23, 2009
Abandoned U.S. Dollar and Paradigm Shift / Currencies / US Dollar
A paradigm shift is underway, unrecognized inside the US kettle. Its water level is falling and its temperature is rising, even as fewer foreign born cooks stir its contents. The US banking and political leaders errantly pursue a path toward a return to normalcy, when all pathways have been washed out by powerful storms that to do abate and will worsen. Several key developments point to a new global order taking shape, as the Chinese actively work to plant global seeds that result in the Yuan currency serving more of a role in global trade. They will eventually de-throne the USDollar from its primal perch. The USDollar will be used less in global trade. The US$-based assets are being diversified. These developments are gaining traction, power, and publicity.
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Thursday, July 23, 2009
US Dollar Collapse Imminent / Currencies / US Dollar
We don't like to make bold predictions. But this time, it is different (famous last words).
You might have seen that we at Crossroads FX tend to trade in a very systematic way, using signals of our proprietary trading system without asking too many questions. But you know, from time to time patterns emerge where you cannot resist.
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Friday, July 17, 2009
Fundamental Driver For the U.S. Dollar's Downfall? / Currencies / US Dollar
David A. Rosenberg, chief economist and strategist for Gluskin Sheff and Associates, writes a very nice (and free) almost daily commentary about the markets and economy. I am sure many of you read Mr. Rosenberg, but if you don't, you can sign up here.
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Thursday, July 16, 2009
Imminent Erosion of U.S. Dollar Seawall / Currencies / US Dollar
The globe is losing patience with leadership and management of the USGovt ship at sea. They simple refuse to offer a credible solution to the primary keynote crack in the hull, falling housing prices and cratered mortgages, each of which work their destructive magic to wreck the banks. The home loan modifications are a farce, a travesty not designed to modify but rather to frame a series of loan forbearances. The motive for not fixing the mortgage mess is mysterious to the masses, but not here. Jackass claims have been consistent, that effective loan modifications would alter the underlying mortgage bonds drastically.
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Wednesday, July 15, 2009
What's Going on With the US Dollar Index / Currencies / US Dollar
While the US dollar was supposed to lose ground against its counter parties, the market has remained surprisingly stubborn and trapped in a sideways trading range.
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Wednesday, July 15, 2009
U.S. Dollar at Risk of Unraveling / Currencies / US Dollar
The Dollar Index (symbol: $DXY) is trading significantly lower this morning, and it is at risk of closing the week below three pivot points as seen on the weekly chart in figure 1.
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Monday, July 13, 2009
The U.S. Dollar Bear Market Trend into 2012 / Currencies / US Dollar
Larry Edelson writes: No doubt you’ve heard about last week’s G-8 Meeting in L’Aquila, Italy. And no doubt you’re hearing a lot of sound bites from the G-8 and the media about the U.S. dollar being a very hot topic at the meeting.
To be sure, the dollar is the central topic on most leaders’ minds right now. After all …
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Tuesday, July 07, 2009
How Long Can the U.S. Dollar Defy the Law of Gravity? / Currencies / US Dollar
In the midst of the longest and deepest, post World-War II recession, America’s financial position with the rest of the world has deteriorated sharply. Three decades of massive trade deficits have turned the United States from the world’s top lender to the world’s largest debtor, - and dependent upon the whims of the so-called emerging nations, laden with huge foreign currency reserves, to finance the bailout of Wall Street Oligarchs, and President Barack Obama’s social programs.
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Monday, July 06, 2009
U.S. Dollar Stability Choppy and Temporary / Currencies / US Dollar
Sterling leads the list of currencies losing against the dollar and yen amid widespread expectations the Bank of England will exercise its quantitative easing expansion option by purchasing an additional 25 bln in assets without seeking govt approval. Concerted selling in emerging market bourses further elevates the risk-aversion lustre of USD and JPY.
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Friday, June 26, 2009
U.S. Stocks, Dollar Decline on China Calls for World Currency / Currencies / US Dollar
The People’s Bank of China report is very significant news for the international monetary system and for the gold market. Their call for a new global reserve currency or super sovereign currency will likely lead to further pressure on the dollar. Despite gold having risen and then fallen in value today, the news is another bullish factor supporting higher gold prices in the medium term.Read full article... Read full article...
Thursday, June 25, 2009
Contraction in Economy Slowing Creates Bullishness for U.S. Dollar / Currencies / US Dollar
The Fed ended much of the uncertainty in the Forex markets today when it announced that its key lending rate would stay between 0 - .25%, and there would be no additional expansion of its balance sheet through the purchases of government assets and mortgages.Read full article... Read full article...
Sunday, June 21, 2009
Why “BRIC” Posturing Against the U.S. Dollar Just Doesn’t Add Up / Currencies / US Dollar
Bryan Rich writes: The dollar has been publicly attacked on many fronts over the past three months. And endless accusations have been made that the U.S. is purposely trying to devalue the dollar to lessen its growing debt burden.
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Saturday, June 20, 2009
Very Dangerous Time For Dollar Index / Currencies / US Dollar
I don't want to get into the prediction game or even be the first one to say, "I told you so", but I believe the Dollar Index (symbol: $DXY) has a very high likelihood of embarking on a major down swing in the coming weeks.
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Wednesday, June 17, 2009
Politicians to the World: “Forget All Those Trillions, the Dollar’s Doing GREAT!” / Politics / US Dollar
As a general rule of thumb, anytime a politician (especially a finance minister or central banker) comes forward to assure investors that his country’s currency is sound, you better believe the currency is in BIG trouble.
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Tuesday, June 16, 2009
U.S. Dollar: the Good, the Bad and the Ugly / Currencies / US Dollar
Russian President Medvedev suggests the dollar is on its way out; Russian Finance minister Kudrin says there is no substitute for the dollar. The Chinese see a need to diversify out of the dollar; the Japanese say their trust in the dollar is unshakable. Let’s look at this puzzle and make some sense of it.
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Sunday, June 14, 2009
How long Can the U.S. Dollar Last as the World’s Reserve Currency? / Currencies / US Dollar
Bob Chapman writes: The big question is how long can the dollar last as the world’s reserve currency? Needless to say, that is not an easy question to answer. We recently called the top on the dollar at 89.50 on the USDX. The USDX is six currencies versus the dollar on a weighted basis. More than a year ago the dollar hit a low on the USDX at 71.18. A phenomenal rally ensued from that level expedited by de-leveraging and the closing out positions within the carry trade. A good example of the carry trade was when a bank in NYC borrowed yen. At ½% interest, sold the yen for dollars and bought dollar denominated securities.
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Sunday, June 14, 2009
What's the Relationship Between the U.S. Dollar and Commodities? / Commodities / US Dollar
Bryan Rich writes: The dollar can’t manage to find its way out of the limelight these days. There’s speculation about its demise and the loss of its world reserve currency status. It’s even blamed for higher gas prices.
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Thursday, June 11, 2009
US Dollar Index Embarking on Voyage of Recovery… / Currencies / US Dollar
…at the least over the shorter term. Last week the US Dollar Index started to rebound from technical support, aided by an interesting ‘Fibonacci’ projection which we detail below. Our bullish view here underpins our thinking across a range of markets that we cover in the FX Trading Guide, where we have adopted some early, somewhat aggressive reverse stances.
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Wednesday, June 10, 2009
Falling Stock Markets Still Key for the U.S. Dollar / Currencies / US Dollar
The intermarket relationship underpinning the US currency and global equities remains largely unhinged, with falling equities persisting as the longe saviour for the corroding US dollar. And so once again the falling US dollar got a fresh respite from a falling stock market. Earlier in the day, the dollar seemed to succumb to one of those typical selling waves after better than expected UK housing numbers, improving confidence figures in Australia and higher than expected Norwegian inflation -- all of which bolstered the rally of these currencies against the greenback. Such figures reduce the need for quantitative easing in these economies, which only add to a widening in their yield differential ahead of the US currency.
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Thursday, June 04, 2009
The Plummeting U.S. Dollar Economic Prosperity Plan / Currencies / US Dollar
It is becoming painfully obvious that the Fed, Treasury, and Administration's disastrous recovery plan hinges on the devaluation of the U.S. dollar. Their specious strategy stems from the belief that a falling currency can re-ignite exports and spark a recovery in manufacturing while putting a floor in U.S. asset prices. But just as the President's initials indicate, the plan stinks of B.O.
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