The Dollar had a rare up day yesterday on the back of a feared government collapse in Portugal. Anytime Europe has a major issue pop up, investors sell the Euro and pile into the Dollar. Today, the Dollar is getting smacked back down. In the last six months, the Dollar has seen less and less buying. Instead of buying the Dollar, investors are running into gold and silver. This is a major change in character for the once mighty U.S Dollar. If the issues in the global picture had been around a year ago, the Dollar would be most likely at new 52 week highs. Between the Middle East, Japan and Europe, the global picture is an absolute mess. However, the Dollar is sitting at its 52 week lows. This tells Wall Street that in the short term, the Dollar could easily go lower.
Relevant Tickers: NYSE:UUP, NYSE:SLV, NYSE:GLD