Category: US Dollar
The analysis published under this category are as follows.Tuesday, February 17, 2009
U.S. Dollar Index Still Bullish / Currencies / US Dollar
My reluctance to embrace the rally in gold has been well documented . One of the reasons, I did not jump on the gold band wagon was the strength in the US Dollar Index. Since August, 2008, it has been my belief that the US Dollar was poised for a secular change in trend and that gold has only been in a range. Based upon this, it remains my belief that the US Dollar is a better place to invest.Read full article... Read full article...
Friday, February 13, 2009
The U.S. Dollar and Monetary Policy / Currencies / US Dollar
One of the chief mandates of the U.S. Federal Reserve is to manage the nation's monetary stock. This essay analyzes the historic growth of the American monetary stock (or aggregates) since 1960 and looks at some recent developments revealing a marked adjustment in policy. These changes are a direct response to the on-going worldwide financial crisis that escalated in September 2008 following the collapse of Lehman Brothers.Read full article... Read full article...
Tuesday, January 27, 2009
How Gold Links U.S. Treasuries and the Dollar / Currencies / US Dollar
US Dollar & Treasuries. The emergence of last week's unsual direct relation between the dollar and gold provided a valuable signal to the validity of the rally in the precious metal. It could also be explained by the rise in bond yields (fall in prices). Last week witnessed a rise in bond yields that was accompanied by a not-so smooth strengthening in the value of the dollar. Despite the dollar's leap to 23-year highs vs GBP, the currency made more modest gains vs the euro while nearing 14-year lows against the yen.Read full article... Read full article...
Monday, January 26, 2009
U.S. Dollar Stalling as Commodities Bull Market Returns / Currencies / US Dollar
Many investors that I have spoken to have moved away from the powerful but volatile commodities market after the cliff-dive drop that occurred in the second half of 2008. Other investors are waiting on the sidelines for the global economic expansion to develop which will bring inventory levels down and prices up. Yet, the underpinnings for the next upward leg of natural resource prices is already in play and leading indicators are starting to break to the upside.Read full article... Read full article...
Monday, January 26, 2009
U.S. Dollar Bull Market Not Over Despite Lousy Fundementals / Currencies / US Dollar
Jack Crooks writes: Prices of assets and securities lie very much on expectations for the future. Indeed, when optimism is present, it's only natural to expect:
- Confidence in the market place …
- Long-lasting spending sprees …
- And rising prices for durable goods and services.
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Friday, January 23, 2009
US Dollar Bull Market 2009 Update - 4 / News_Letter / US Dollar
January 21st , 2009 Issue #3 Vol. 3Prevailing bearishness continues against the U.S. Dollar amidst a near infinite reasons of why the Dollar is doomed. But as an active experienced trader, one thing you soon painfully learn is that the fundamentals don't count when it comes trend reversals, as by the time the reasons have become apparent the market has already moved by as much as 50% and even then there exists the continuing dilemma of the trend versus the fundamental views based on hard data. However as I have discussed several times with would be traders in that your trading the price not the indicator or data. The bottom line is that what the price says is that which only 'should' count.
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Wednesday, January 21, 2009
US Dollar Bull Market 2009 Update 4 / Currencies / US Dollar
Prevailing bearishness continues against the U.S. Dollar amidst a near infinite reasons of why the Dollar is doomed. But as an active experienced trader, one thing you soon painfully learn is that the fundamentals don't count when it comes trend reversals, as by the time the reasons have become apparent the market has already moved by as much as 50% and even then there exists the continuing dilemma of the trend versus the fundamental views based on hard data. However as I have discussed several times with would be traders in that your trading the price not the indicator or data. The bottom line is that what the price says is that which only 'should' count.Read full article... Read full article...
Sunday, January 18, 2009
U.S. Dollar Bullish Despite Global Recession / Currencies / US Dollar
Jack Crooks writes: The U.S. has become the most significant consumer in the world when it comes to demanding finished goods and discretionary items. Now, however, U.S. consumers are holding on to their wallets a whole lot tighter. You can see that clearly in this week's announcement of December retail sales …Read full article... Read full article...
Thursday, January 15, 2009
Radioactive U.S. Dollar UDN ETF Protection / Currencies / US Dollar
There is a rather interesting scientific experiment going on right now in the United States. The experiment involves the effect that intensive radiation has on the brains of rats. Who is conducting this experiment? Why Wall Street, of course!
With all of the highly leveraged, stupid bets blowing up in Wall Street's face, it has been the equivalent of a nuclear bomb going off right in the middle of Wall Street. Most people would use common sense and get as far away as possible from the nuclear blast.
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Wednesday, January 14, 2009
U.S. Unemployment Boosts the Dollar / Currencies / US Dollar
Jack Crooks writes: Friday was a big day for the market. The mother of all economic data reports created its usual commotion. That is, U.S. Non-Farm Payrolls were released … and the numbers gave analysts plenty to talk about.
The U.S. lost 524,000 jobs in December. And as bad as that looks, earlier rumors had the markets preparing for much larger losses. The unemployment rate, on the other hand, jumped more than had been expected — up to 7.2%.
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Friday, January 09, 2009
U.S. Dollars Inevitable Demise, Doom and Gloom, Get it Straight! / Currencies / US Dollar
"There will, before long (my best guess is between two and five years from now) be a global dumping of US dollar assets, including US government assets. Old habits die hard. The US dollar and US Treasury bills and bonds are still viewed as a safe haven by many. But learning takes place." -Telegraph 1/6/09Read full article... Read full article...
Wednesday, January 07, 2009
U.S. Government Panic Could Herald Dollar Crash / Currencies / US Dollar
One of the few things more troubling for an economy than government intervention is government intervention driven by panic. Time and again, history has shown that when governments rush to engineer solutions to pressing problems, unintended difficulties arise.Read full article... Read full article...
Monday, January 05, 2009
U.S. Dollar Strong Start to 2009 / Currencies / US Dollar
The USD is on the offense this morning for the most part as the first full day of post-holiday trading gets underway in New York. Overnight was a mixed bag for the Greenback as early weakness in index futures put a bit of downward pressure on the USD/JPY and mixed pressure on EURO and Cable; thin conditions were reported in Asia as a half-day holiday was seen in Japan.Read full article... Read full article...
Friday, January 02, 2009
Ten Major Threats Facing the U.S. Dollar in 2009 / Currencies / US Dollar
1) Foreign central banks selling US assets
Most of the nations which have been financing the US's massive current account deficits in recent years have either begun to sell their dollar reserves last year or are planning on selling them this year in order to support their currencies. These nations generally fall into three categories:
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Saturday, December 27, 2008
The Deflation Driven U.S. Dollar Bull Market of 2009 / Currencies / US Dollar
Jack Crooks writes: I'm often hearing how much everyone seems to be anxious to put a lid on 2008 and get started over — refreshed. I can understand that. This has been a very challenging year for many investors.
But, some hidden treasures have also appeared in the markets amongst the mess we've become accustomed to …
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Monday, December 22, 2008
Why the U.S. Trade Deficit is Worsening and Dollar Implications / Currencies / US Dollar
Right up until the commodity bubble burst this summer, there was the ridiculous theory going around that the world was now "decoupled" and that European and emerging markets would somehow avoid being affected by the US slowdown. These decoupling theories disappeared as oil dropped like a rock, only to be replaced by an equally ridiculous idea: that the world's economic pain would be spread evenly. This is wrong. Although the entire world is going into a recession as a result of the credit crisis, some economies are better prepared than others to weather the storm.Read full article... Read full article...
Saturday, December 20, 2008
U.S. Dollar Buying Opportunity? / Currencies / US Dollar
Jack Crooks writes: Traders have slashed the price of the U.S. dollar. And that's terrific news! Now you can get your hands on greenbacks far cheaper than you could only two weeks ago. If you are a regular reader of my Money and Markets columns , you know that my long-term theme is that the dollar will climb sharply through most, if not all, of 2009. And now's certainly not the time to deviate from those expectations.Read full article... Read full article...
Friday, December 19, 2008
U.S. Dollar Plunges as Devaluation Policy Seeks to Export Deflation / Currencies / US Dollar
Bernanke & Co. on Tuesday signaled to the financial markets that they were hell-bent on pursuing an “inflate or die” approach to rescuing the ailing US economy and fending off the forces of deflation. The Fed is now inflating at a level possibly not seen before by a developed nation since Weimar Germany.Read full article... Read full article...
Wednesday, December 17, 2008
Fed Policy to Drive U.S. Dollar Lower to Prevent Deflation / Interest-Rates / US Dollar
Faced with the threat of deflation, the Federal Reserve (Fed) may be trying to drive the dollar lower to spur inflation. As policy makers don't want home prices to deteriorate further, an alternative is to inflate the prices of all other goods and services: as a result, the relative prices of homes would be less expensive. Weakening the dollar is an effective policy tool to drive up inflation as the cost of import goes up. Just be careful: the Fed may be getting more than it is bargaining for.Read full article... Read full article...
Wednesday, December 17, 2008
Crude Oil and U.S. Dollar Inverse Relationship? / Currencies / US Dollar
Are oil and the US Dollar inverse to each other? No. At least not always.
There are numerous articles out about “Dollar Up & Oil Down”, or “Dollar Down & Oil Up”.
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