Seeking Alpha

Dollar gets no flight to safety bid

  • Rising rates, the decline in stocks, and escalating violence in Egypt provided no bid for the greenback which fell across the board today.
  • The dollar (UUP -0.7%) lost more than 1% against the Swiss franc (FXF +1%) and nearly 1% vs. the yen (FXY +0.8%) and cable (FXB +0.9%). The euro (FXE +0.7%) gained nearly three quarters of one percent.
  • Typically the first to sell off when markets get a bit panicky, even the loonie (FXC +0.2%) and the aussie (FXA) picked up ground against the U.S. unit.
  • A reason? Maybe the commodity sector (DBC +1%) - it was notably strong with metals, energy, and the grains all higher.
  • Related dollar ETFs: UUPT, UDN, UDNT.
  • Broad commodity ETFs: DJP, GSP, LSC, RJI, GSC, GCC, GSG, DBC, DPU, DJCI, UCI, USCI, DYY, UCD, DEE, CMD, DDP, RGRC, CTF, CFD CSCR, CSCB.
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Comments (3)
  • Brian Bobbitt
    , contributor
    Comments (1905) | Send Message
     
    Right now the US$ is trading lower [81.1800] than recent days, but lots higher than it has been for a while. Many are looking for the dollar to go away, lose value, and so on. The US$ is the strongest currency there is, and it will take a lot to topple it status. The global economy as a whole could do it, but there no single entity able to. The basket of wannabees can't get their own act together any more than we can, and all have more warts that we do. It will be a long time before folks don't want the US$. In the meantime as it drops in value along with the others, Precious metals will continue to have their day. Nuff said. buy some Palladium. That's your best % move today.
    Capt., Brian
    The Lost Navigator
    15 Aug 2013, 05:19 PM Reply Like
  • Dr. Duru
    , contributor
    Comments (1512) | Send Message
     
    Hard to accept that higher commodities drove the dollar higher. Usually, the causation is explained the other way around. I have yet to find any good explanations on any major finance media outlet, so I suspect this is a blip in illiquid summer trading?
    15 Aug 2013, 10:30 PM Reply Like
  • Brian Bobbitt
    , contributor
    Comments (1905) | Send Message
     
    DR D, can you make that clearer for an old reprobate from the beach? I kinda get your drift but the last sentence loses me. I think I agree with your observation, but it sounds like you are bringing inflation into the talk without using the word. Clear up your thought for us will ya? Thanks Dr D.
    Capt. Brian
    The Lost Navigator
    16 Aug 2013, 12:11 PM Reply Like
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