Man i experienced that dollar drop while shorting Silver. Man what a crap trade that was. the dollar is fundamentally weak but still technically strong. What currency would the world have instead of the dollar?? both the pound and euro have shown definite weakness with there economies. everytime i think the dollar about to crash it comes back strong. I could see a daytrade in the dollar but long term better watch out even with the fed printing money like they printing newspapers.
1st May 2009 David Powell - Bank of America - Merrill Lynch <object width="425" height="344"><param name="movie" value="http://www.youtube.com/v/ojkoo5675oM&hl=en&fs=1"></param><param name="allowFullScreen" value="true"></param><param name="allowscriptaccess" value="always"></param><embed src="http://www.youtube.com/v/ojkoo5675oM&hl=en&fs=1" type="application/x-shockwave-flash" allowscriptaccess="always" allowfullscreen="true" width="425" height="344"></embed></object>
Thank you. Interesting counter viewpoint and article. It is risky, in my opinion, to base conclusions re the current world economies on history from the gold standard period. The often made predictions regarding the US economy based on the Japanese experience I believe to be on equally shaky ground, as there are crucial differences between Japan and the US that I think largely invalidate these arguments. Lastly it is a curious observation that real inflation in the US as measured by the prior metrics has been running 6-12% during this early phase of the recession, though there seems to be signs that growing unemployment, which is now at 15% by the historic metric, is having an effect, and inflation seems to be moderating. Thus we haven't seen any aggregate deflation yet, even though it's obviously present in some sectors. Real deflation, should it occur, would be a horrible disaster for the US, even though, as always, some parties would benefit.
Did you see the yields on US treasuries skyrocket. The fed has realized that the dollar is F'd. They are letting rates rise to defend the dollar, but even with the surge this week, the dollar only held its own, it didn't rise. Stay short. Don't listen to the creton heads.
If you're a technical trader then trade what you see, not what you or others think! Acting on the opinion of others is the beginning of the end because chances are they don't know any more than you do (ps what are 'creton heads', they sound tasty whatever they are!)
Good call OP, since no one has said it yet. I think the test is coming. closing the DX below 83.08 is key in my books.
I covered half today, it just seemed a bit much. I took it off at 83.90. I'll let the rest run. The inflation is getting a little overheated here. I think the fed might take their foot off the pedal a bit in the next couple days.
Major crossroads/support for the DX soon. Trifecta of the July '08 trendline, 200-day SMA, and March '09 low. If we break there, it'll end the series of higher highs/higher lows from the past year.