U.S. Dollar Is All Brakes, No Gas

Summary

• Year-to-date, the dollar has been sliding terribly, especially against other developed market currencies, as "smart money" flees the dollar.
• I've taken tactical positions over the course of this year and last in foreign currencies, and gold. I've also taken a bet against the USD.
• The government is currently at a crossroads as one end of proclaims to be dealing with the ever-growing debt, while the other end grows the deficit.
• This effect leads to lower confidence in the dollar, and is a reason why positive reports like a CPI beat caused the dollar to slide.
• It's unclear how low the dollar can go, but it has a lot of room to keep going, potentially another 10% or more against a basket of foreign currencies.
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Dmytro Lastovych

Analyst’s Disclosure:I/we have a beneficial long position in the shares of FXE, FXY, GLD, UDN either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.