Dollar Delight

Two days ago we posted on the recent breakout for the US Dollar and its positive implications.  Today the Dollar is having its best day since July 2005 with a gain of 1.167%.  As shown in the charts of the Dollar index and the Euro below, the trend sure looks to be in the Dollar's favor for the time being. 

click to enlarge

Comments

[Gross Bill:]

Actually, I didn't see anything about its implications in either article. If possible, please prepare a study that compares dollar uptrends to the stock market.

2008 Aug 08 10:02 AM

[cyclingscholar:]

AWESOME! Now if the fed would just get some CAJONES aqnd raise SHORT TERM RATES, LONG TERM RATES would fall as a result of collapsing commodity and inflation expectations, and the world would be on the road to recovery.

cyclingscholar

2008 Aug 08 10:57 AM

[Larry House:]

You are right, Gross Bill. These guys throw out some info and let it hang--never an "implication" or a conclusion. You can draw your own conclusion as to my feelings about their posts.

2008 Aug 08 11:33 AM

[bold4gold:]

Nice 8 month chart on the us dollar. Let's see a five year chart! I'll be shocked if this sucker can make it any higher than 78. Gold and the dollar are both consolidating. One will go up and the other down. With the bailout of freddie, fanny, and other financial institutions I know where I'll place my bets. Good luck to all you believers in the FED.

2008 Aug 08 01:10 PM

[dieuwer:]

I agree with the implied premise by the article that the dollar will embark on a cyclical bull in its secular bear. I basically expect it to be a replay of 2005.

2008 Aug 08 01:42 PM

[secmaven:]

Bear market rallies in any financial instrument are sometimes quite dramatic. It is what happens after the rally that counts. Also, there will be no financial crises during the Olympics. The Chinese are at work.

2008 Aug 09 10:33 AM

[User 201843:]

...get rid of dollars and do gold that is what this implies!

2008 Aug 09 12:41 PM

[NOWHEREMAN:]

War, Dollar always rises.

Besides, now that a new aspect has occured, liaility for Auction Rate Security sales and the rapid evaporation of the only earnings sector left, the S&P will be revised down.

Exports Kaput, Eurozone inflation up dramatically during a slowdown, The FEDs emergency window open until next year, writedowns escalating in the Financial Sector, must be a sure thing. Fed will raise interest rates.

2008 Aug 09 01:41 PM