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tinecu

Why the Dollar rally?

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Negative interest rates, crippled US economy but dollars are still being bought more than sold?

 

G8? Yen carry?

 

I dunno. :blink:

 

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Because nothing goes down, or up, in a straight line, except when an extreme is reached.

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Because nothing goes down, or up, in a straight line, except when an extreme is reached.

 

Well of course. However, I suppose I was wondering where the support from the dollar might be coming from...e.g. SWFs or margin calls? Fishing I suppose, on an uneventful day. :P

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Well of course. However, I suppose I was wondering where the support from the dollar might be coming from...e.g. SWFs or margin calls? Fishing I suppose, on an uneventful day. :P

I suppose this reason is as good as any.

 

NEW YORK (Reuters) - Wall Street stocks and the dollar moved sharply higher on Tuesday after putting aside recent credit and inflation worries on reassuring comments from Federal Reserve Chairman Ben Bernanke and a sharp drop in commodities prices on futures markets.

 

Investors took comfort as crude tumbled, bringing the decline in oil prices so far this week to about $10. The rout in energy carried into metals and agricultural prices, with selling spurred along by a surging dollar. A rise in the U.S. currency means less dollars are required to purchase the commodities.

 

The dollar's rebound came broadly, as the U.S. unit was lifted by Bernanke's statement that the U.S. central bank is willing to keep its emergency lending facility for major Wall Street firms open beyond the end of the year.

 

http://www.forbes.com/reuters/feeds/reuter...L-WRAPUP-6.html

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Negative interest rates, crippled US economy but dollars are still being bought more than sold?

G8? Yen carry?

 

(the obvious answer?):

 

Oil slips more than $9 a barrel in 2-days

Anticipated weakness in demand and some calm from Iran's leader send futures to their lowest level in nearly 2 weeks.

 

NEW YORK (CNNMoney.com) -- Oil prices extended a post-July 4th descent Tuesday - falling more than $9 a barrel over two days - as Iran's president downplayed concerns about possible war in the Middle East and investors anticipated falling demand due to high gasoline prices.

 

 

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(the obvious answer?):

 

Oil slips more than $9 a barrel in 2-days

Anticipated weakness in demand and some calm from Iran's leader send futures to their lowest level in nearly 2 weeks.

 

NEW YORK (CNNMoney.com) -- Oil prices extended a post-July 4th descent Tuesday - falling more than $9 a barrel over two days - as Iran's president downplayed concerns about possible war in the Middle East and investors anticipated falling demand due to high gasoline prices.

 

Dollar Edges Higher on Jawboning

 

The dollar edged up higher on Tuesday, rising to 1.5637 versus the euro and 107.51 against the yen as comments from Fed officials added support for the greenback. Economic data released today included pending home sales and wholesale inventories. May pending home sales plunged sharply, down by 4.7% and reversing the 6.3% increase a month earlier. Meanwhile, wholesale inventories was marginally better than forecast at 0.8%, down from 1.3% from April.

 

Traders focused on Fed speak amid a quiet session for US economic reports. Fed Chairman Ben Bernanke propped up the dollar in the morning pledging to extend the duration of facilities for primary dealers beyond year-end, should current unusual and exigent circumstances continue to prevail in dealer funding markets¡±. Bernanke tempered heightened fears stemming from concerns over the solvency of Fannie Mae and Freddie Mac.

 

Hawkish comments from Richmond Fed President Jeffrey Lacker also benefited the dollar, saying the Fed must be prepared to raise rates even if unemployment remains high and growth is still weak. He also added that the Fed must act forcefully if inflation expectations erode and be vigilant of risks associated with persistent high inflation. Lacker said that downside risks to growth have diminished significantly since the start of the year while expectations for future inflation have become untethered. Interestingly, Lacker voted to leave policy unchanged at the Fed¡¯s June meeting with Plosser being the sole dissenter, voting for a rate hike in stead. Nonetheless, we expect the FOMC to leave rates unchanged until Q4 given the current economic outlook

 

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Jawboning......I love that word.

 

Wonder how many times they can talk the dollar up for it to fall flat on its face yet again. :lol:

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Very obvious intervention attempting to prevent a breakdown from the bearish flag which will be followed by massive dumping.

 

 

scid6.png

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Very obvious intervention attempting to prevent a breakdown from the bearish flag which will be followed by massive dumping.

 

 

scid6.png

 

Yup. Looks likely to me too...in fact it appears to be happening already.

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