Category: US Dollar
The analysis published under this category are as follows.Tuesday, December 16, 2008
U.S. Dollar Crashes Through Support Treasury Bonds to Follow / Currencies / US Dollar
Over the past several days the dollar has gone into a severe decline, and this drop does not look like a reaction within an ongoing uptrend, as was the case in September, for as we can see on the 6-month chart it follows the development of a Head-and-Shoulders top area, a distribution pattern that took nearly 2 months to form. It looks like the dollar has broken down from an important reversal pattern. We had correctly identified the Head-and-Shoulders top back when the dollar index was high in the Right Shoulder of the pattern, when a Dollar Special update was posted on the site on 5th December, warning of a probable imminent dollar breakdown.Read full article... Read full article...
Tuesday, December 16, 2008
Zero Interest Rate Bound Fed Breaks U.S. Dollar / Currencies / US Dollar
The Fed's shift towards a range of 0-0.25% in its fed funds target zero intensifies the yield assault to the dollar, leaving little chance for traders but to extend speculative and directional offers in the currency. The decision prompts the biggest 2-day rallly in EURUSD (4.8%) following last week's 5.1% jump. The dollar is unlikely to immediately descend into an uncontrollable decline as the easing campaigns of overseas central bankers and secular market volatility has yet to recapture its peak. But the longer term prospects ahead appear particularly ominous for the world's reserve currency once global economic stability starts to buildup and the demand/supply schedule of commodities further moves towards the price.Read full article... Read full article...
Friday, December 12, 2008
U.S. Dollar Set to Decline on Back of Bailouts Frenzy / Currencies / US Dollar
Martin Hutchinson writes: The plethora of bank and corporate bailouts, stimulus plans and interest-rate cuts that the U.S. government has produced over the last three months can only lead to one outcome: The U.S. dollar has to decline.
During the crisis so far, the dollar in general, and U.S. Treasury bonds in particular, have been regarded as a “safe haven,” making the dollar strong and pushing long-term U.S. Treasury rates downward. In the New Year, however, this is likely to change – the weight of the added supply of dollars in circulation will be too great for the greenback to shrug off.
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Thursday, December 11, 2008
U.S. Dollar in Retreat as Corporate Failure Risks Soar on U.S. Auto's Bailout / Currencies / US Dollar
It may be premature to call the recent currency developments a paradigm shift, but it is worth shedding light on these changes as the news from Capitol Hill overlap with thin trading volumes. The current weakness of the US dollar is not only taking part against higher yielding counterparts such as the commodity currencies (which was usually assign of improved risk appetite), but also against the Japanese yen. Since the intensification of the market and economic weakness, the greenback would gain versus most major currencies with the exception of the yen during curtailed appetite, while losing ground versus its higher yielding counterparts and weighing on the yen at times of improved risk appetite.Read full article... Read full article...
Saturday, December 06, 2008
U.S. Dollar Bull Market Thriving on Bearish Skeptics / Currencies / US Dollar
Jack Crooks writes: I was doing some research earlier in the week, and I came across a blog I'd never heard of written by a guy I'd never heard of on a topic that we've all most certainly heard of … the U.S. dollar.
It was the same old story that's been beaten into the ground:
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Wednesday, November 26, 2008
Deleveraging Pushes Up the U.S. Dollar / Currencies / US Dollar
In view of the economic crisis facing the American and global markets, the recent strength of the U.S. dollar has confounded analysts. After all, the global economic problems essentially emanate from the United States and one would assume that the collapse of our economy would drag our currency down. That has not, as yet, transpired. The explanation can be found in a financial concept known as deleveraging.Read full article... Read full article...
Friday, November 21, 2008
U.S. Dollar Technical Analysis and Forecast / Currencies / US Dollar
Casting aside fundamental arguments relative to the long-term viability of un-backed fiat currency, we turn our focus to a purely technical assessment of the past 8-years of price data for the US dollar index.
Technical Tools used in our assessment are the following:
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Monday, November 17, 2008
U.S. Dollar Bullish Worlds Reserve Currency Dynamics / Currencies / US Dollar
Jack Crooks writes: It's times like these when I'm really glad that I haven't devoted myself to trading in the stock and commodities market. Sure there's money to be made, even on the downside.
However, the dynamics of the currency market are far more appealing to me … especially at a time like now when good companies and bad companies are tossed into the same rinse cycle and hung out to dry by fiscal and monetary policy decision-makers.
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Thursday, November 13, 2008
The US Dollar Has Got To Go! / Currencies / US Dollar
It is clear that the United States has relied on a continuous cycle of debt growth to fuel its economy. The engine of the US economy has been the US consumer, and consumer debt had to expand at a rate that far outpaced negligible consumer income growth in order for the US economy to continue to “grow.”Read full article... Read full article...
Friday, November 07, 2008
How to Survive the Coming US Dollar Collapse / Currencies / US Dollar
Now that the US election is over, we get to think about the Future. And, no matter how you look at it, the entire world, the West particularly, is in for tough sledding financially.
First, we will continue to battle an emerging economic slowdown. Then, later, we will be battling world currency instability – we already have signs of this now.
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Saturday, November 01, 2008
Toxic Emerging Economies Boost U.S. Dollar Safe-haven Demand / Currencies / US Dollar
Jack Crooks writes: An advance report of third-quarter U.S. GDP showed a decline of 0.3%. That's awfully pathetic, right? But not quite as pathetic as the 0.5% that was anticipated …
Still, there's no denying that a GDP contraction of any amount is unappealing. And when it comes to many of the recent U.S. economic indicators, most everything's been unappealing … if not downright ugly.
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Friday, October 31, 2008
Bankrupt United States Will Reverse Recent Dollar Trend / Currencies / US Dollar
When inexplicable events perplexed our early forbears, village wise men concocted elaborate and colorful explanations to soothe the populace. Earthquakes, hailstorms, and solar eclipses were all ascribed to root causes that made sense to the villagers and increased the esteem of the story tellers. The recent, unexpected surge of the U.S. dollar has led many Wall Street witch doctors to conjure a series of logic-defying tales to give reason to what is surely the random scramble of a confused herd. Wall Street spun similar yarns during the dot.com and real estate bubbles as investors groped for reasons to justify sky high prices.Read full article... Read full article...
Tuesday, October 28, 2008
U.S. Dollar Has Entered a Multi-year Bull Market / Currencies / US Dollar
Jack Crooks writes: It's a popular notion when the financial winds are blowing unfavorably:
Money is being printed uncontrollably … inflation is the only option … fiat currencies are doomed.
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Tuesday, October 28, 2008
Why Gold Price Rise Will Trigger U.S. Dollar Collapse / Currencies / US Dollar
For the last few years, the dollar has been in a bear market due to the horrible fundamentals backing the currency (the huge debt mountain, unfunded liabilities in the tens of trillions, rampant money printing by the central bank, and the huge federal budget deficit). However, in the last three months the US dollar has diverged from its fundamentals and rallied due to investors fears about deflation.Read full article... Read full article...
Monday, October 27, 2008
U.S. Dollar Bull Market Update / News_Letter / US Dollar
October 26th , 2008 Issue #35 Vol. 2The role of the U.S. Dollar as the worlds reserve currency kicked into gear this past week which accelerated the up trend of the US Dollar towards its initial forecast target of USD 90 as per the analysis of mid August 08 which was made against the overwhelming consensuses at the time that basically viewed an imminent collapse of n the US Dollar. Which despite the exceptionally strong rally to date that consensus more or less remains in tact today, where still the vast majority of views remain that the Dollar's rally as temporary in advance of a much greater and near imminent collapse.
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Sunday, October 26, 2008
U.S. Dollar Bull Market Update / Currencies / US Dollar
The role of the U.S. Dollar as the worlds reserve currency kicked into gear this past week which accelerated the up trend of the US Dollar towards its initial forecast target of USD 90 as per the analysis of mid August 08 which was made against the overwhelming consensuses at the time that basically viewed an imminent collapse of n the US Dollar. Which despite the exceptionally strong rally to date that consensus more or less remains in tact today, where still the vast majority of views remain that the Dollar's rally as temporary in advance of a much greater and near imminent collapse.Read full article... Read full article...
Saturday, October 25, 2008
U.S. Dollar and the Flying Bankers / Currencies / US Dollar
The heart of the crisis is very simple: banks won't lend. Why they won't lend is irrelevant, the solution is so simple it seems too good to be true: force banks to lend. The modern economy functions on credit; exporters sell to foreign buyers using complex Letters of Credit packed with shipping insurance, small businesses depend on rotating credit lines to purchase inventory they sell to the consumer. Mostly working on small margins, these businesses depend heavily on credit to stay afloat; even a short disruption in their lending activities would literally bankrupt them. This has already started happening, and the banks are sitting on the sidelines. The simple, clear solution is to force banks to lend, by any means. Giving banks more money is not helping, they already have plenty of money, the problem is not that banks are undercapitalized it is that they will not lend. Read full article... Read full article...
Friday, October 24, 2008
Exploding Debt Dynamics: Argentia and the U.S. Dollar's Fate / Currencies / US Dollar
Whither the dollar and gold? To answer that long-awaited inquiry – which will take some time to cover in full – let's start by getting a handle on “exploding debt dynamics.” Cartoonish as it sounds, it's a real term that IMF economists use.
If, like me, the phrase gives you visions of Wile E. Coyote blowing himself up with a box of ACME brand dynamite, you aren't too far off.
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Friday, October 24, 2008
U.S. Dollar Currency Collapse Within 30 Days / Currencies / US Dollar
It appears that there is a common refrain going around the investment community. It goes something like this:
"Gold should be doing better, and, since it isn't, I am not going to buy it"
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Thursday, October 23, 2008
The U.S. Dollar Death Dance / Currencies / US Dollar
The US Dollar rally in the last several weeks has been remarkable. At closer examination, it highly resembles a spurt prior to death. Imagine an old man who just had a heart attack, lost feeling in certain body parts, his mind not working right, plenty of nonsense gibberish coming from his mouth, and now he is dancing hard on some last gasps. The vast liquidation movement is akin to the old man going through an embalming process while dancing atop the tables at the funeral parlor, as bidding proceeds for his cadaver.Read full article... Read full article...