Gold is viewed as tangible money right around the world, and has been for millennia. When the trading herd wakes up to the fact that neither the U.S. dollar nor the euro, nor any other fiat currency, will protect them against the monetary storm that will soon begin tearing the roofs off their cozy offices, they’ll fall all over themselves in the rush for something that will: gold and other tangibles.
August 27th, 2008 | David Galland | 2 comments | ContinuedAll Posts Tagged With: "U.S. dollar"
U.S. Dollar Rallies as Economic Foundation Crumbles
There are at least four reasons we can think of that explain the U.S. dollar’s resurgence (although none of them suggest permanent new strength). The first is that the short-dollar trade is being covered. A lot of institutions were short the dollar. The suddenness and swiftness and simultaneity of the short covering explains the explosiveness of the rally (and the similar carnage in commodity prices). Second, there’s an emerging trading thesis that as Europe and Japan post negative…
August 18th, 2008 | Dan Denning | 2 comments | Continued
U.S. Dollar Strength or Oil Weakness?
Is it U.S. dollar strength or oil weakness? The greenback is strutting its stuff over the last few weeks, up nearly six percent against the euro. And the Aussie dollar, which had been within an eyelash of reaching parity, has since declined to eighty cents against Team America’s currency. Does it matter? Well, sort of. For reasons explained in this space ad nauseam, the U.S. dollar isn’t fundamentally strong. But relatively speaking, it might look less weak than it used to.
August 14th, 2008 | Dan Denning | 2 comments | Continued
How the U.S. Dollar Came to be the World’s Reserve Currency
The BRIC nations held an historic meeting in Yekaterinburg, Russia, last week. They’re growing very fast…with rising markets, rising incomes, rising currencies, and rising GDPs. Together, their percentage of total global growth grew 50% between 2000 and 2008.
May 30th, 2008 | Bill Bonner | 2 comments | Continued
Inflation Up… Gold Up… Oil up… Dollar up… Dollar down…
You can’t got to bed these days without waking up to higher prices for everything. Crude futures in New York hit nearly US$130 overnight, and now everyone is wondering what’s next. US$150? US$200. Even our fish is wondering. He darted back and forth acrosss the tank this morning as we both watched the overnight report from New York on TV.
May 21st, 2008 | Dan Denning | 2 comments | Continued
The U.S. Dollar vs Inflation, Americans Vote for the Dollar
With inflation creeping into the American economy in the form of rising food and fuel prices, the real consequences of weak dollar are coming home to roost. And it seems to be bothering Americans psychologically as well as economically. “It’s not just the economic impact,” Paul Burt, the head of Westlake Financial Group, tells Bloomberg. “The perception of the decline in the dollar is as important as the decline itself. The dollar needs to be respected in the world, and the government needs to realize that.”
May 15th, 2008 | Dan Denning | 1 comment | Continued
U.S. Dollar Bulls Rallying Behind Fed Statement
There is a view emerging in financial markets that the seven-year bear market in the U.S. dollar may be at an end. This view, if it can get some traction, would have big implications for commodity prices and Aussie resource shares. A U.S. dollar rally would take some steam out of oil prices for sure.
May 5th, 2008 | Dan Denning | 0 comments | Continued
U.S. Dollar Rally Not Based on Fundamentals
The U.S. Dollar Rally is not based on fundamentals. The difference in interest rates is surely not driving the dollar rally (unless you believe the Fed is done cutting rates and the ECB will soon begin). U.S. rates, adjusted for inflation, are negative. And it’s certainly not U.S economic growth driving the buck. While the Saudis ride the increase in the oil price to 5% annual growth, America is barely growing at 0.6% in the first quarter, if the official GDP figures are to be believed.
May 2nd, 2008 | Dan Denning | 3 comments | Continued
Australian Dollar Set to Grow for the Remainder of 2008
The Australian dollar is as strong as it’s been since the beginning of the commodities boom. It takes just one dollar and five Australian cents to buy the greenback. The latest move probably comes as traders read the inflation tea leaves and do not see the Reserve Bank cutting rates this year. If the CPI data show official prices growing above the 3-4% range, then for the rest of 2008 the Australian dollar is going to enjoy a significant yield advantage.
April 23rd, 2008 | The Daily Reckoning | 2 comments | Continued
AUD USD Parity Could Be Difficult to Reach
The Aussie is hostage to competing forces right now. On one hand, the endless rise of world commodities prices and the great fall of the US Dollar are good reasons to back the Australian currency. Indeed, Australian exporters can take full advantage of rising gold, metals and energy prices.
March 18th, 2008 | Dan Denning | 1 comment | Continued