Wednesday, February 6, 2008

Musings on the Dollar

This is a quickie. If the US economy hints at slowdown and the rest of the world has a coronary, what does that say about them? How about this - they are in rough shape, too. And sooner or later their central banks are going to have to try to combat their own slowdowns by cutting interest rates.

Lower rates there means capital is going to flow back here, in the opposite manner that it did when US rates were falling like candidates in an election year. The dollar is going to find some support and surprise everyone.

Remember, markets of all kinds like to fool as many people as possible and what market is more lopsided than the US dollar?

3 comments:

Unknown said...

I agree, maybe a run to 80

Unknown said...

Voila !!

Up goes the $$$$ !!

Michael Kahn said...

Not too shabby.

As a pure technical analyst, I really did not know the Bank of England was even meeting the next day. But others clearly did and that showed up in the charts!