Saturday, August 7, 2010

Peter Schiff Says Run from U.S. Dollar

The payroll report on Friday confirmed what many of us knew, that the outrageous monetary and fiscal stimulus has failed, and that sends a signal to all of us that we should flee the U.S. dollar, says Peter Schiff.

Rather then following in the footsteps of other countries, which have been removing stimulus, the U.S. is actually planning on increasing “quantitative easing,” which is just a fancy phrase for printing money to acquire government debt.

That will bring even more pressure on the dollar, and drive its value down even more. The U.S. Dollar Index has dropped eight weeks in a row, and will probably continue to do so in light of the misguided government policies.

If quantitative easing resumes, which at this point appears inevitable, some believe it will kill the dollar as we know it. One of those is St. Louis Federal Reserve President James Bullard.

Saturday, July 3, 2010

Euro Reaches 6-Week High Against US Dollar

Terrible economic news last week had the euro end Friday up against the US dollar to its highest level in 6 weeks.

The US economy lost 125,000 jobs in June, the first monthly drop in six months, and combined with other bad economic news, has investors and consumers concerned over whether or not we're in a recovery at all, or the huge amount of money thrown at the economy only masked its inherent weaknesses.

The euro rose to $1.2553 in afternoon trading in New York from $1.2480 late Thursday. Right after the Labor Department said that 125,000 jobs were lost in June in the U.S., the euro topped off at $1.2613, its highest level since May 21.

While some have interpreted this as a nod toward avoiding the worst in Europe, it's highly doubtful that's the case, and there's a lot to play out there before we're through.

Thursday, July 1, 2010

United Nations Wants One Global Currency - Controlled by IMF

A United Nations report today called for the abolishing of the U.S. dollar as the global reserve currency, and replacing it with the International Monetary Fund’s special drawing rights (SDRs).

The UN doesn't want to replace with a basket of currencies either, but only on on IMF-controlled SDR’s.

The report also said, “A new global reserve system could be created, one that no longer relies on the United States dollar as the single major reserve currency.”

Some believe the US dollar is being attacked for the purpose of exploiting the weakening economic situation in order to institute a global currency issued by the IMF.

Tuesday, June 8, 2010

US Dollar Down on Risk Appetite

The US dollar continues to move up and down with the risk flavor of the day, as today it was a move by traders to being more risk oriented, and consequently the greenback fell in value as a result against other major currencies.

Currencies linked to commodities peformed against against the US dollar, while the British Pound weakened against the dollar.

While the UK isn't focused on as much in relationship to the European Union because they still have their own currency, it is in danger of losing its AAA debt rating according to Fitch Ratings, as their slow response in implementing austerity measures is causing investors to lose confidence in the Pound.

The Canadian, Australian and New Zealand dollars did well today because of their link to commodities, after taking a beating lately because of risk concerns related to raw materials.

Thursday, May 27, 2010

Euro Gains On U.S. Dollar as China Soothes EU Holdings Fears

After China denied it was going to divest of its huge holdings in the euro, the euro had a rare day in making gains against the U.S. dollar, at least in the recent weeks.

The U.S. dollar skyrocketed when news China was going to take measures to shrink its exposure to European debt. Once the reports were denied, the dollar went backwards while euro rebounded.

Currencies have been fluctuating wildly on the forex recently, and every bit of news related to the sovereign debt crisis in Europe moves them up and down, depending on what is the flavor of the hour.

Currency traders of course love this; at least those that know what they're doing, as volatility is the friend of the expert, and that's when they make the most money in their currency bets.

The story of the Forex is the euro, and the story of the euro is the sovereign debt crisis. As the sovereign debt crisis goes, so will go the euro, U.S. dollar and the yen.

The U.S. dollar and the yen are joined to the action because they are the currencies of choice investors go to when fears pervade the markets.

Gold is a wiser choice, but some, unbelievably, haven't caught on to that yet.

Other currencies play a part of course, but these three will always be in the euro and EU debt crisis story as it continues to unfold, along with gold, which a growing number of investors are treating like an alternative currency.

Sunday, May 9, 2010

US Dollar Strengthens on Sovereign Debt Crisis

While gold is the top place investors are putting their money for a safe haven, the US dollar has been strengthening against other currencies as the sovereign debt crisis in Europe continues to unfold.

There aren't many safe places to put money now, as the stock market crashed and equities continue to be very volatile in the midst of extraordinary economic pressures.

This week the US dollar did enjoy its best gain since October 2008, a testament to the weakness of paper currencies, not the strength of the dollar.

The dollar continues to gain against the failing euro.

Wednesday, March 10, 2010

US Dollar Mixed Against Currencies

US Dollar Mixed

The U.S. dollar today was mixed and without much movement, as relatively little news of significance emerged to effect the greenback.

Other currencies were similar, other than the British pound which continues to be hammered by the numerous events and pressures it's undergoing.

Neither currency is particularly appetizing at this time, neither will the be over the long term.

The U.S. dollar seems to have a chance to strengthen based on perhaps nothing else than contrarian investing, as most people have been dollar bears for a long time, and little positive is leaking out about the currency.

US Dollar Mixed

Tuesday, March 9, 2010

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Ray Esally

Gary Thomas

Tommasino Conito

Allen Nine

Jim Stevens


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Author Team Watching U.S. Dollar

Ray Esally

Gary Thomas

Tommasino Conito

Allen Nine

Jim Stevens


Sunday, March 7, 2010

China Ready to Drop Dollar Peg?

China U.S. Dollar Peg

Although it may not happen quickly, it looks like China has decided they're gradually going to remove the dollar peg with the renminbi, saying it was a temporary measure to deal with the economic crisis.

It's hard to tell if this is a consensus with the Chinese, or one faction making an assertion while the others are holding to a policy of needing a stable exchange rate between China and the U.S.

Confirmation from the Chinese government hasn't come yet after Zhou Xiaochuan, governor of the People’s Bank of China, made the comments of changing the peg sometime in the near future.

Of course when thinking of the Chinese, we must take into consideration their idea of what "near" means and what ours is. In this case, they seem to be thinking of a period of two to three years, tying it into the low levels of Chinese exports since the global economic crisis began.

China U.S. Dollar Peg