US Dollar: Is the Rally Over?

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Subject Author Date US Dollar: Is the Rally Over? Monitor 08-20-2008  Re: US Dollar: Is the Rally Over? jeflin 08-21-2008  Re: US Dollar: Is the Rally Over? STOCKER 08-22-2008
Posted by Monitor on August 20, 2008, 11:28 pm US Dollar: Is the Rally Over? After rallying for the past 2 weeks, the US dollar saw its strongest correction against the Euro in almost a month. Producer prices were hotter than expected as the annualized pace of growth hit a 17 year high. With import prices surging to a record high in the month of July, it was not surprising to see producer prices follow suit. Don=92t forget that July was also the month that oil prices hit a record high, which may be part of the reason why the rally in the dollar post PPI was short-lived. The housing market numbers also failed to help the greenback as housing starts and building permits both declined last month. However what really killed the dollar was the rally in oil prices and the sell-off in US stocks. On an intraday basis, crude prices rose to a high of $116.65 a barrel. As for stocks, there continues to be concerns about the banking sector from problems at Fannie Mae and Freddie Mac to the rumors that Lehman Brothers needs to raise capital by selling a part of their high valued investment management business. This leads to the question of whether the rally in the US dollar is over and in all likelihood, no. The dollar has gained a lot of ground in a very short period of time which means that further gains will come at a much slower pace and a correction is expected, which is what we are seeing now. Posted by jeflin on August 21, 2008, 1:58 am > US Dollar: Is the Rally Over? > > After rallying for the past 2 weeks, the US dollar saw its strongest > correction against the Euro in almost a month. Producer prices were > hotter than expected as the annualized pace of growth hit a 17 year > high. With import prices surging to a record high in the month of > July, it was not surprising to see producer prices follow suit. Don=92t > forget that July was also the month that oil prices hit a record high, > which may be part of the reason why the rally in the dollar post PPI > was short-lived. The housing market numbers also failed to help the > greenback as housing starts and building permits both declined last > month. However what really killed the dollar was the rally in oil > prices and the sell-off in US stocks. On an intraday basis, crude > prices rose to a high of $116.65 a barrel. As for stocks, there > continues to be concerns about the banking sector from problems at > Fannie Mae and Freddie Mac to the rumors that Lehman Brothers needs to > raise capital by selling a part of their high valued investment > management business. This leads to the question of whether the rally > in the US dollar is over and in all likelihood, no. The dollar has > gained a lot of ground in a very short period of time which means that > further gains will come at a much slower pace and a correction is > expected, which is what we are seeing now. A substanital portion of the rally is a reaction to the exodus of funds from commodities. I think there could be some correction as the Fed got to inflate money supply to bail out Fannie and Freddie, this will make the dollar less valuable. http://jeflin.net Posted by STOCKER on August 22, 2008, 1:05 am It is rising to some degree. However, another component is that the other currencies are falling faster. the Euro is in trouble. Similar Threads Posted HWYI Dividend FAQ, $$2-$$$$4 dollar estimated based on 84 million dollar independent valuation November 2, 2006, 12:12 pm Re: The US dollar continues its decline. Now the Canadian dollar is worth $1.10. November 20, 2007, 8:16 am OCBC's Tanuwidjaja Says Investors Jittery on Oil Prices, Dollar, ``The whole sentiment has turned bearish on emerging market assets. There is jitteriness over oil prices and the dollar June 9, 2008, 10:34 pm Re: The birth of Wall Street's bailout culture: ROTFLOL!!! oil below $100.00, faber goes long on dollar for over a month now, commodities are in a free fall, decoupling is a myth, asian economies in free fall, dollar up sharply, yea, its different this September 12, 2008, 9:52 pm RALLY ????? WE Don't Need No Stinkin Rally ! ! ! March 19, 2008, 4:11 pm dollar November 7, 2007, 7:52 am dollar value November 19, 2007, 3:12 pm 6 dollar is all you need. March 7, 2008, 9:42 pm how is US dollar going to be? September 23, 2008, 8:47 pm What's next? The US Dollar? October 9, 2008, 5:09 pm