Comments on: Significant Strengthening of the US Dollar http://blog.afraidtotrade.com/significant-strengthening-of-the-us-dollar/ Helping traders overcome fears and emotions in trading Thu, 09 Feb 2012 14:53:15 +0000 http://wordpress.org/?v=2.9.2 hourly 1 By: Richard http://blog.afraidtotrade.com/significant-strengthening-of-the-us-dollar/comment-page-1/#comment-129095 Richard Mon, 11 Aug 2008 05:22:46 +0000 http://blog.afraidtotrade.com/?p=2737#comment-129095 The US Dollar has had a strong increase -- its gone parabolic up on interest rate differentials; currency traders bet this last week that the ECB is going to lower interest rates to stimulate growth. So they shorted EUR/USD. And the currency traders shorted the Euro heavily relative to the Yen making the EUR/JPY, the yen carry trade unwind; this benefited those in indexed ETFs: DRR Double short euro rose 8% DTO Double short crude 16% BOM Double short base metals 12% Given its rise, the Dollar is going to correct on Monday, and pushing above 76 is going to be difficult even as oil, which makes up a large part of the CRB, falls lower again. Yes, the CRB is going to reach $380 soon, and this is going to be strong resistance. I do not share your bullishness on the dollar or on stocks, I am very bearish on both; and present a case for gold and short selling in the linked article. The US Dollar has had a strong increase — its gone parabolic up on interest rate differentials; currency traders bet this last week that the ECB is going to lower interest rates to stimulate growth. So they shorted EUR/USD.

And the currency traders shorted the Euro heavily relative to the Yen making the EUR/JPY, the yen carry trade unwind; this benefited those in indexed ETFs:
DRR Double short euro rose 8%
DTO Double short crude 16%
BOM Double short base metals 12%

Given its rise, the Dollar is going to correct on Monday, and pushing above 76 is going to be difficult even as oil, which makes up a large part of the CRB, falls lower again. Yes, the CRB is going to reach $380 soon, and this is going to be strong resistance.

I do not share your bullishness on the dollar or on stocks, I am very bearish on both; and present a case for gold and short selling in the linked article.

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