The US DOLLAR is beginning its quasi surge to 89-90 now.

The US Dollar (helped by a collapsing yen vis a vis the USD) is starting a new leg up this morning which should take it to the 89-90 area. This is major resistance on the LT charts and is coincident with Fibonacci "89" and Gann "90" (360/4). The dollar index is higher this am but the reaction in other markets affected by a stronger dollar is even greater (ie, Lower in Crude Oil and Gold). This should lead to lower lows (recent bottoms) in crude, gold, silver and related markets. Buy dips in the dollar until we get over 88. LT the chickens will come home to roost with the USD but ironically problems elsewhere in the world leads to ST Dollar Strength....your comments are welcome.

Correct, when commodities values are lower, the currency they are traded in's value is higher.

This is fairly predictable following the old adage what goes up must come down, and if it isn't obliterated by the fall than it will bounce back again.

Just waiting till the gold drops some more before buying.....
i think it wll eventually figure in as a partial underinning to the new currency the world will adopt after this all goes west.....
It is totally Ironic snt it?
Almost like somebdy is conductng the financial orchestra in some sadowy hide away.....
Perhaps the US is scrambling to replace gold they were hoarding for other countries, thus must depress the market to get it

They say the USD will spike before its collapse. Only because all other currancys will go first and leave the USD last to fall.

Originally posted by camaro68ss
They say the USD will spike before its collapse. Only because all other currancys will go first and leave the USD last to fall.

I agree with you.It will spike by default!I have a feeling the worldwide collapse will begin in Europe then like dominos,everywhere else.

The Canadian dolard will no collapes...It will be worth more thatn the USD again in no time.

reply to post by muzzleflash

Many commodities have been trading relatively firm on the basis of a consensus view that the US Dollar will continue to Depreciate (go down). Markets often do the exact opposite of what a strong consensus believes and this may be the case here - - at least the charts support the move to 89+ as predicted.....concomitantly, commodity prices will fall as a result.

There's no question that this is a broad-based dollar rally because every major currency has lost value against the greenback. What started as a post-jobless-claims uptrend has now turned into the biggest two-day dollar move in over a month, and if next week's US retail sales report confirms that job growth has translated into spending, the rally will continue.

US Dollar Index
www.fxstreet.com...

The Dollar Index took out the early April high this morning....continuing the upward impulse wave as it surpassed the next resistance level.

Piping hot Bernanke Bucks, artificially high prices, extremely high risk for little return. All looks good from the Ponzi Palace.

What could possibly go wrong?

Seriously though, this is not growth; this is complete and utter desperation. It's like knowing the train is going to crash into the ravine ahead so open the throttle to hurry it up!

DOW to infinity!
Until it doesn't.

The market is going up because of FED is printing money, period. A company's sales will go up and up because the government has to increase entitlements. How will they fund the largesse? Debt issuance. But who will buy the bonds? The Primary Dealers. But who will they sell the bonds to?...Ah, the Fed.

But how does the Fed pay for all these trillions of purchases? It just prints more money and then credits it directly to the Primary Dealers. What do they do...INVEST IN STOCKS.

It's a completely vicious and moronic cycle and it WILL BE the end of the USD when people realize that the emperor has no clothes on. Then watch out below.

The Unintended Consequence Of The Soaring Dollar

I'm sure the Chinese are thrilled about this.

"Some companies have borrowed in dollars, converted them into yuan and bought into yuan-denominated assets, waiting for the Chinese currency to strengthen further. The inflows have brought about pressures for the yuan exchange," Liu said.

The People's Bank of China last week set the daily reference rate of the yuan against the dollar at 6.1980, the highest in 19 years. Indicators show that capital flows into China have accelerated in recent months.

"Exports from the delta region increased a lot last month, but exporters have found it hard to make profits given the yuan's appreciation," said Xiao Feng, deputy general manager of One Touch Business Services Co, a Chinese provider of foreign-trade services.

"However, most exporters in the delta region have told us that the rising yuan value has led to a big profit decline," said Xiao, without elaborating on how much profits have declined. Zhang Zhenghu, deputy general manager of the overseas sales branch of Gree Electric Appliances, said the company had to increase the price of its products early this year because of the yuan appreciation.

With the introduction of measures to crack down on hot money inflows, there is a possibility of a weak yuan exchange rate in the near future.

Dollar recovers vs the euro and yen after Williams speaks

U.S. Federal Reserve could begin easing up on the monetary gas pedal this summer and end its bond buys late this year.

www.reuters.com...


I have heard this mentioned a couple weeks before, September if I recall. Just watch what happens when the FED stops monetizing the debt. Also, make no mistake, Japan is playing with fire by its intentional debasing of their currency.

Why do I say that? Japan's version of the FED QE isn't a mere 85 billion a month, they are singing to the tune of 200 billion a month.

Originally posted by MidnightTide
Just watch what happens when the FED stops monetizing the debt.

Absolutely no way that Bernanke cuts or stops QE.

No.
Way.

Ponzi schemes can only go in two directions. Expand or implode.

reply to post by stirling

It goes without saying that gold will continue lower as the dollar rises.....as we have seen the last few days (still have not taken out the April low tho).

reply to post by METACOMET

The monetary relation is bouying the stock market but the gold market has been in a healthy correction since 2011- one would expect the effect on the dollar to be bearish as well....but we are currently climbing (89-90 target)... perhaps because too many people are bearish on the dollar (for the obvious fundamental reasons) and markets dont necessarily work that way.

Against fellow safe havens in the yen and Swiss franc, the dollar has advanced 1.5 and 1.6 percent this past week respectively. Alternatively, AUDUSD and NZDUSD were down 2.9 percent over the same period. There is innate strength from this currency which has led it to gains against all major counterparts since the beginning of the year. At this point, the various scenarios that are likely to unfold over the coming weeks point to minimized dollar losses and leveraged gains.


Without doubt, the greatest change the broader market could undergo moving forward would be a systemic shift in investor appetite. The frantic and reckless search for return has led to historic levels on benchmark equity indexes against questionable growth, the widest divergence between carry trade pairs and their yield and record levels of leverage on the New York Stock Exchange. A deleveraging / profit taking phase is an increasingly likely outcome the further we move from the rooted fundamentals of risk taking. Yet, the dollar would thrive under such circumstances. Furthermore, the most likely catalyst for a confidence shift – the realization of the limits to stimulus – would only further leverage this currency’s appeal.

Good to see the self proclaimed "patriots" and "freedom lovers" cheering on and hoping the Dollar collapses.

Continue exposing yourselves for what you really are.

Originally posted by muse7
Good to see the self proclaimed "patriots" and "freedom lovers" cheering on and hoping the Dollar collapses.

Continue exposing yourselves for what you really are.

Take your partisan accusations elsewhere.

No one is cheering for a dollar collapse, we are simply reporting the end of the reserve currency brought upon by reckless spending / Keynesian economic policies.

Now go back and expect the government (ahem - Obama) to look after you.

Dollar starts to recover.
Whispers of this, hints of that.
But what is it really, making petro dollars phat?

=============

I've been saying the following for about two years behind a paywall.
I think the moment has come to let it out at no charge,
as an ATS exclusive. It goes like this.

=============


First dream land, then reality.

Imagine in dream land what would happen
if every single person in America was given
one million dollars, but no one spent any of it.

Not one thin dime. There would be no inflation.

People picture wheelbarrows full of money to buy bread.
But if no one spends any of it, then there is no inflation. None.

These companies that got all this bailout money,
the problem is that they are not spending it.
They are not hiring, they are not buying.

All that money is their war chest
in case the government
sues them.

===================

some new comments.

===================

See, you can't have inflation
at the same time you don't have
any job growth or increase in wages.

Of course the dollar is still rock solid.
Hell I can get an entire meal at McDonalds
for seven bucks. How is that even possible?

I can still get my yard cut for twenty dollars. Some things are going up, sure. But anyone who bets against the US dollar is going to lose in the long run. We are not too-big-to-fail. We are too big to notice all the invention, creativity, and value-added that goes on here in this country. Every year, every month, week, day, and hour.

/bar-b-que!


Mike Grouchy