How do you pronounce Trump trade?

I’ve presented two charts below, first The US Dollar Index. I tend to watch this index as its a broad measure of The US Dollar’s exchange rate against a basket of six of America’s most important trading partners i.e., EUR, JPY, GBP, CAD, CHK & SEK. Its better to look at a broad measure than [...]

And so the currency wars …

Last month’s G20 finance ministers meeting in Moscow ended with the proclamation they would “refrain from competitive devaluation”. Well, someone should tell the left hand what the right hand is up to. The chart above details the Yen index ($XJY, black line) and Pound index ($XBP, blue line) compared to the US Dollar index [...]

Currency Wars

The G20 Finance Ministers meeting in Moscow last week ended with the proclamation that there would no currency wars. Historically when the G20 Finance ministers make public statements like this they are privately doing the opposite. These press releases are solely for public consumption, the ministers aren’t so much concerned about the decline in [...]

US Dollar why so strong?

The chart above shows the startling strength of the US Dollar, rising some 6.20% since May 1st 2012. Given the dreadful state current of the American economy, the excessive debt levels and negative outlook, why is the US Dollar so strong? Two words: capital flight, or money fleeing weaker nations and moving into the [...]

The biggest currency manipulator on the planet

Here is an interesting one: everyone “knows” that China is the biggest currency manipulator on the planet. After all, the US press almost constantly drives the message home, blaming all of America’s woes on China who, they claim, has kept the yuan artificially low.

The reality is a little different. The chart above [...]

Where will your money be safe?

Comparison of various safe haven assets, YTD, May 24th 2012

As Europe continues to mire about in crisis, China slows, Japan gets downgraded and the Swiss maintain their controversial Euro / Swiss Franc peg a curious thing is happening; money is flowing into America and the US Dollar and only America and the US [...]

2012 – Year of the Dollar?

Dollar Index, 1992 to 2012, weekly

The chart above shows the value of the US Dollar when considered against a basket of America’s six most important trading partners. Clearly, as US debt levels have increased the relative value of the Dollar has retreated from highs last seen in 2001 / 2002.

But given [...]

The unnatural strength of the US Dollar …

The Euro trades the lowest its been in 18 months, the Yen drops on rumours of further BOJ interventions even as the technical analysis guys say the US Dollar could strengthen another 20% against the Yen when will it all end?

Perhaps not soon. Best to go along with strong dollar in the [...]