Dollar Primed for Collapse by End June, page 1

Dollar Primed for Collapse by End June, page

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Topic started on 30-5-2010 @ 10:37 PM by ararisq

I thought I'd link to this article by CNBC contributor Daryl Guppy. I don't follow CNBC closely, but I didn't think it was in the habit of having such "sensationalist" articles from its contributors - I'm sure I'll be corrected...

Source

Dollar Primed for Collapse by End June: Charts

The dollar's recent strength has been explained by most market analysts as a result of the euro weakness rather than any fundamental support for the greenback.

I completely agree that the dip in gold in the past few weeks and the subsequent strength of the dollar has been more about the relative weakness of the Euro than the strength of the US economy.

In the next section of the article he displays a chart of the performance of the US dollar over the past several weeks and breaks down the curve -- please do click the link and read over it.

The dollar index suggests the greenback will continue to stengthen until the end of June, with a target near $0.89-$0.91, before it collapses to a downside target of $0.81.

I suppose his view of 'collapse' is a bit different than mine. I believe the dollar will continue well below $0.81 after its gains due to the weakness of the Euro are exhausted and the world comes back to the realization that the US is in very bad shape with its $13,000,000,000,000 funded program debt which makes the Euro zone debt look tiny by comparison.

Interesting read none the less.

reply posted on 30-5-2010 @ 10:44 PM by orionthehunter

So you're basically saying buy dollars now. Then sell them before the end of June if you're a short term trader because there will be a slight pullback? That sounds reasonable since the Euro is getting devalued with more Euro zone countries expecting downgrades. A rising dollar will be good for the US economy to knock down gas prices but it will hurt US manufacturing a little bit. Some might argue that European countries may need a manufacturing boost and a devalued currency does do that to some extent.

reply posted on 30-5-2010 @ 10:50 PM by ararisq

reply to post by orionthehunter

There is a separate article on CNBC supposing that the Euro will continue its decline at least through June, its troubles I think are just starting and they are but a fraction of our own. So, yes, I would think the dollar would continue to gain strength.

The problem in Europe is that the devaluing of the currency, the high jobless rate plus the loss of social services which the people have become dependent on will result in social unrest similar or worse than Greece. Those problems will spill over causing the US to further decline.

reply posted on 30-5-2010 @ 10:52 PM by hippomchippo

I thought it was last year...Or the year before that...
These predictions may be correct in the long run, but these dates never come to fruitation.

reply posted on 30-5-2010 @ 10:52 PM by clay2 baraka

reply to post by ararisq

Mine it, buy it, hoard it or trade it? The best way to make money from gold is to trade it. The gold market offers some unique opportunities. In this 84 minute DVD by CNBC Asia “Chartman” Daryl Guppy discusses the behaviour of the gold market and how this is related to the gold price. The analysis of the gold market is the market analysis Guppy provides for industry associations, and Government departments. Guppy explains how to use the main gold market instruments and the unique risks, and opportunities, associated with each. Guppy shows you how to trade gold more effectively using derivative instruments such as Exchange Traded Funds (ETFs) and Contract For Difference (CFDs). Guppy explains how to outperform the gold price movement by trading gold producing companies, and gold explorers. Learn how to identify explosive returns from gold in advance and avoid the 3 gold trading traps that will cost you money. These are trading tactics from a master trader. Don’t miss this golden opportunity.

www.guppytraders.com...

No hidden agenda here.

Nothing to see here, move along. . .

reply posted on 30-5-2010 @ 11:07 PM by glitchinmymatrix

reply to post by ararisq

I find the title a bit misleading since I figure "collapse" means it's worthless, but the wording wasn't yours.

I wish I understood more about finances when I hear about these things in the news so that I could have an idea of what to expect. It's one of those things you like to have a grasp on so that you don't have to trust someone else...like at a mechanic's shop.