The dollar has jumped 10 percent since early July. It’s still at historical lows, but now that it’s broken through its long-term trend, it could very well go up further. There’s lots of ways to trade a strengthening dollar. One of the ways is to bet against the companies hurt by a dollar increasing in value. Companies that rely on exports and overseas sales for a substantial portion of their total revenue would certainly qualify. In a matter of a couple of months, their goods…
A few weeks ago I talked about how the U.S. Dollar Index ($USD) was hitting an eight- year resistance line. I also said that it was unlikely the dollar would rally above this point and that you should short the dollar. Well, the dollar broke above its eight-year resistance line. And the implications could be huge. We could see a dollar rally for the next six to twelve months. So why did the dollar rally? It’s a combination of things really. But it begins with the intervention that the US,…
Will the Amero, representing, a single currency for the US, Canada and Mexico come into fruition? It would not surprise me in the least. The dollar based monetary system is aging and extremely fragile. Change is in the air and it’s best to be prepared for it. We’ve been discussing the Amero in several recent articles (Part 1, 2). Many readers took the time to respond to the ideas presented. The responders were predominately outraged at the thought of losing national sovereignty….
The US dollar has had its run of the globe since the end of WW2. American technology and “know how” have held center stage. We have had the greatest economy and military the world has ever seen. These enviable attributes were eventually combined with a near infinite ability to print and distribute dollars and other financial products. Everybody wanted what the US had to offer. Those days are gone. The response to last week’s article was overwhelmingly positive. IDE readers…
Every time I think about the world financial system, I keep coming back to the same image… Everybody’s around the poker table… trying to call each other’s bluff. I can see Morgan Stanley on one side… Citigroup, and Lehman are there too. And they are all bluffing about what they’re holding, and everyone playing knows it. Banks don’t trust each other right now. Just look at the London Interbank Offered rate (LIBOR). This is the rate banks charge to…
Are we likely to hear those fateful words one day? The answer is a resounding yes if conniving globalists have their way. Canada, the US and Mexico are destined to be one more major currency block. What exactly will that mean for you and your progeny? First of all, we need to comprehend exactly what is to bring forth this new “arrangement”. What is wrong with the old one? The US dollar is on life support. The failing debt markets in the US are the foundation of the dollar. The buck…
The media has been howling about the recent rally the dollar has had. They believe that the bear run might be over. But a rally that lasts a few weeks doesn’t make a trend. And all indications point to ‘danger ahead’ if you go long the dollar. The first thing to be aware of is that the dollar is hitting resistance in the form of an eight-year long trend line. Not only that, but once the dollar hit that trend line earlier this month, it started selling off. This shows that the…
In the past, girls have called me oblivious. They’d hint that they liked me, but I’d never acknowledge it because, well, I was too oblivious. But had I just paid attention, I could’ve dated some amazing girls. So I think it’s particularly funny to see Toyota being oblivious too. From the wires… Toyota Motor Executive sees a mild recovery in US auto market starting in the fourth quarter. – Briefing.com Yeah, I can see exactly why Toyota sees a mild…
With some currency traders expecting the Fed to push rates higher to combat inflation, the dollar has seen recent strength. But will that strength last long enough to reverse the multi-year long dollar downtrend? It’s highly unlikely. Since March, The U.S. Dollar Index (NYBOT: DX) has been consolidating between the 70 and 74 cent range. Since mid-July the dollar has mounted a strong rise to the top of this range. But with the continued risk of more foreclosures, multi-billion dollar…
The US Dollar Index was up 0.38 percent last week. Its strength helped bring the price of crude oil down. The dollar still matters enormously. But, as you can see from the chart, it didn’t break any important resistance. It didn’t break its 20-week (the red line) resistance. Even when it did – at the beginning of June – it didn’t hold. And it’s not even near the upper rail of its channel. It’s very hard to see the dollar making a sustained upward move….
