Gigem77

Dollar Reversal Underway?

This is the weakest dead cat bounce the dollar has made in 2 years. It failed at 74. The dollar (DXY) has failed to rise above the 200 sma since early in '06. That number today is 75.14. Good luck taking out that technical level, dollar bulls. This week the fomc will not raise rates and next month the ECB will. Trichet said so. Would he lie? ;) Nothing fundamental has changed. The trade, budget and current account deficits are still growing. Inflation is running hotter, even using the phony BLS data. Money is flowing out of stocks, bonds and real estate. It's flowing into commodities. So where is the source of a dollar rally?

Jawboning and short-covering into the quarter-end are the last hurrah for the buck. But it won't get 'er done.