What do you think about the dollar?

[research24]

What do you think about the dollar?

Up an amazing 1.47% today. I have to admit I no longer have any clue as to what is driving it.

[MikeJ]

Deleveraging maybe? Who knows.......

But yeah, kinda silly how much its up today.

[SkinnerVic]

What do you think about the dollar?

Up an amazing 1.47% today. I have to admit I no longer have any clue as to what is driving it.

My intuition is that the mess with the BOE has people running on "cable". It wouldn't surprise me that it's what's driving the market today. Wait till Hopenchange hits tomorrow - I have not a frick'n clue what the market will do, but I'm of the opinion it's going to be hard up or down.

[ascentient]

Honestly, Research24 I'm getting a little bit scared. Every day I plow through information from many different sources trying to get a feel for what "should" be occurring and every day events just don't add up.

From what I can tell, with respect to the dollar's strength, I think dollar-based investors (including the dollar-euro carry trade based investors) are pulling out of Europe. I think this is due to the political instability within Europe as a result of investors being able to withdraw support for certain nation's bonds (Ireland, Spain, Italy etc.) and instead buy German bonds.

With the Irish, Spanish, Italian etc. governments effectively unable to finance fiscal stimulus and simulataneously losing the benefits of monetary stimulus I think the Euro is gradually going to show pressure. This could have a number of consequences, the visible one (I think) is the USD appreciating rapidly against the Euro.

That's just my 2 cents.

[prahudka]

Honestly, Research24 I'm getting a little bit scared. Every day I plow through information from many different sources trying to get a feel for what "should" be occurring and every day events just don't add up.

From what I can tell, with respect to the dollar's strength, I think dollar-based investors (including the dollar-euro carry trade based investors) are pulling out of Europe. I think this is due to the political instability within Europe as a result of investors being able to withdraw support for certain nation's bonds (Ireland, Spain, Italy etc.) and instead buy German bonds.

With the Irish, Spanish, Italian etc. governments effectively unable to finance fiscal stimulus and simulataneously losing the benefits of monetary stimulus I think the Euro is gradually going to show pressure. This could have a number of consequences, the visible one (I think) is the USD appreciating rapidly against the Euro.

That's just my 2 cents.

Accelerating the risk of default? US is better able to pay debts with devalued dollars. Hard to get the economy going with local mfr-ing at a continuing disadvantage. Just guessing.

[research24]

Ah, well, chaos is what we should expect. I guess that's what panics are all about. I just haven't kept up with Euroland, Asia instead. This outcome somewhat surprises me after all the hype about the euro becoming the new standard. (I never thought so). Now they're saying the yuan -- now that's a hoot!

SkinnerVic has probably nailed it -- gonna go up or down. Although there is the improbable scenario that , at least as a far outlier, could remain quite the same ;-)

[ricm123]

What do you think about the dollar?

Up an amazing 1.47% today. I have to admit I no longer have any clue as to what is driving it.

The U.S $ INDEX (NYBOT DX) allocates a large slice of the pie to the Euro.

Several currencies are down today. (see www.ino.com)

WOW... $USD up 1.69 at time of this post! Very big jump for 1 day.

[Frelodr]

So are we probably going to see a rally in the dollar and silver both tommorrow? From what I have seen lately, if the dollar goes up --> Silver goes down. Lodr

[goldragon]

for me, USD is in up channel.

[Frelodr]

for me, USD is in up channel.

I'm guessing, but from the looks of that chart, I'd guess a dollar rally tommorrow and gold and silver going down. If they go down thats fine with me. It maybe one of the last real good drops to buy before a good silver rally. I will be watching intently tomorrow. I've been waiting it seems like a couple weeks now to buy more. But as you all know I'm very new at this and learning. Lodr

[cfole]

for me, USD is in up channel.

Triple top at USD $88.

[hiyosilver]

Looks like the dollar has butted heads with both the 50dma and the bollinger band, now it's on the "O" wagon.....might be at the top of the roller coaster a day or two...:)

[mark2112gum]

The US dollar is just mind boggling. I can't believe that 'toilet paper' is worth so much...

[goldragon]

I'm guessing, but from the looks of that chart, I'd guess a dollar rally tommorrow and gold and silver going down. If they go down thats fine with me. It maybe one of the last real good drops to buy before a good silver rally. I will be watching intently tomorrow. I've been waiting it seems like a couple weeks now to buy more. But as you all know I'm very new at this and learning. Lodr


so far so good: all are up!
http://quotes.ino.com/chart/?s=NYBOT_DX&v=w
http://quotes.ino.com/chart/?s=FOREX_XAGUSDO&v=s&w=5&t=l&a=2
http://quotes.ino.com/chart/?s=FOREX_XAUUSDO&v=w

[Diogenes]

[QUOTE=goldragon;33782]so far so good: all are up!

and THAT is significant as we are all waiting for PM's to trade INDEPENDENTLY of paper valuations. With the huge ( over 3% ) move in the dollar these past 2 days one WOULD HAVE expected PM's to be down, but they are modestly higher.

One point does not a trend make, but MAYBE people are starting to figure out that no PM's have been created on this earth in billions of years while more paper money is created every day. A disconnect should happen some day and the extraordinary paper inflation that is going on at every central bank at this time is likely to trigger this disconnect sooner rather than later.

IMO When it happens it will happen big. In the meantime people will fruitlessly try to figure out "where the dollar is going", when in reality it makes no difference whether it is valued 3% more or less than a euro when the buying power of either currency against a commodity will be dropping 10 times that amount or more.

[Ancona]

[QUOTE=goldragon;33782]so far so good: all are up!

and THAT is significant as we are all waiting for PM's to trade INDEPENDENTLY of paper valuations. With the huge ( over 3% ) move in the dollar these past 2 days one WOULD HAVE expected PM's to be down, but they are modestly higher.

One point does not a trend make, but MAYBE people are starting to figure out that no PM's have been created on this earth in billions of years while more paper money is created every day. A disconnect should happen some day and the extraordinary paper inflation that is going on at every central bank at this time is likely to trigger this disconnect sooner rather than later.

IMO When it happens it will happen big. In the meantime people will fruitlessly try to figure out "where the dollar is going", when in reality it makes no difference whether it is valued 3% more or less than a euro when the buying power of either currency against a commodity will be dropping 10 times that amount or more.


I agree. Tt no longer matters to me what is going on in the paper markets, physical metals have quietly disconnected and have begun to travel their own path. It matters not what happens on the COMEX, only what occurs in the physical markets .

The liars in power are trying to lull the sheeple to sleep with their bailouts, stimulus checks and "hope". I for one, am not buying it.

BTW, can I borrow your lantern?

[podrag]

It's a fundamentally flawed currency that is perfroming a bizarre death-dance. Demand for dollars only exists because:

a) Derivatives contracts are written to be settled in dollars
b) War is still being declared on hedge funds who go dollar short/commodity long by the well connected banks - hedge funds liquidate due to margin requirements.
c) Idiots who can't think for themselves still see the dollar as a safe currency. I hear sh*t in my office like 'the dollar is always safe long term' and 'gold and silver have no utility'.

Duh!? The dollar used to be 1/20.67 of an ounce of gold, when gold was monetized! One dollar used to be over 40 dollars at least and that was only 2 generations ago!

As an aside £1 sterling 300 years ago was 12 troy onces of sterling silver or about 0.9 ounces of gold. Since then the pound has lost 99% of its purchasing power in silver (even though silver has supposedly been demonetized) and 99.8% of its purchasing power in gold.

If one currency is worse than the dollar right now its sterling. I seem to be the only persn in the country outraged by this as well. I feel like Winston in 1984.

Me 'The pounds down to $1.40! Our currency is being debased horribly! Isn't this aweful!?'

British Person 'Uhhhhhh... Yes... I suppose...'

[My Pants Are Cold]

What do you think about the dollar?


I think a fat stack of them is one of the most beautiful sights I'll ever behold. :)

[research24]

I think a fat stack of them is one of the most beautiful sights I'll ever behold. :)

Yes, they do spend quite well, don't they?

We got our answer today out of euroland as a flight out of euros and into dollars. People can bad mouth the dollar all they want, but if I were their employer I'd say, Okay pal, you get paid in pesos and pounds. Enjoy.

[Ardent Listener]

Is it that the dollars has really gotten much stronger? After all we are going through a financial meltdown here in the U.S..... Or is it that the Euro, Australian dollar, the New Zealand kiwi and etc. all have gone down as their economies have started to fail too? Many investors were using their currencies as dollar alternatives. The dollar now really isn't all that much stonger, just less weak compaired to them. Thus the dollar just appears to be moving up right along with silver and gold prices?

[OyPolloi]

Is it that the dollars has really gotten much stronger? After all we are going through a financial meltdown here in the U.S..... Or is it that the Euro, Australian dollar, the New Zealand kiwi and etc. all have gone down as their economies have started to fail too? Many investors were using their currencies as dollar alternatives. The dollar now really isn't any stonger, just less weak compaired to them. Thus the dollar appears to be moving up right along with silver and gold prices.

The charts were ripe for a PM decline, but it didn't happen. The dollar going up and the market going down while gold/silver/oil are up....that's nature's way of telling you the time has come to go all-in on real value assets. A new round of capital destruction is currently underway, but this time folks aren't selling PM's. A lot of people mock the gold bugs - and hey, they've been wrong for years and years - but this time IS different.

Every day I speak with someone else who has been devastated by this market. Best of luck to all.

[ascentient]

The thing I'm gradually noticing with people I engage with is that when I mention that I buy physical gold and silver nobody yet has called me crazy. The most common response is "you can't go wrong with precious metals".

Most people seem to be realizing that stocks and real estate aren't going to keep going up (sure they seem to be hoping for a rebound, but not necessarily expecting it). When it comes to PM's they don't seem informed or comfortable but they *expect them to be safe*. Occasionally someone will mention Treasuries to me, but with the amount of debt being created most people can see a potential risk to them.

At the end of the day I think people are strongly turning to cash in the bank now, and soon a lot of people will start trying to make small PM purchases. Once they become more informed and start noticing the market fluctuations (and the premiums), this will give us the bull run we've all been waiting for.

The dollar meanwhile... it's going down in a big way (measured against gold, anyhow).

[research24]

I'm beginning to think that things are about to suddenly change for the worse. Bailouts have failed and banks are going down again.

Let's see if another panic develops. The dollar going up is the result of a big sell-off in Europe and flight into dollars. HaHaHa! Watch what happens here.

[ascentient]

Yep, the coming month will be a bad one for a lot of people...

On a side note, the Dow/Gold ratio hit it's lowest closing value in... I think a decade or more? Definitely lower than any day in the past few years... 9.27 close. That's not good for the market, but a great sign for gold.

[research24]

Does "the market" pay any attention to that ratio? Or only gold bugs?

By the way, I thought I knew the word ascentient, but when I looked it up it wasn't in my dictionary. Care to explain?

[OyPolloi]

Does "the market" pay any attention to that ratio? Or only gold bugs?

Does it matter?

[ascentient]

"The market" in general wouldn't have a clue about the Dow/Gold ratio. It's mostly gold bugs and strategic investors (or Austrian Economists) who are aware of it. After all, we think in terms of gold. :)

I don't know that "ascentient" has a meaning. I just combined two concepts: ascend (to rise) and sentient (to understand), which creates ascentient: one with rising understanding. ;)