|
Slowing Eurozone, lower oil, Fed’s inflation concern and Bank of Japan’s refusal to raise rates bullish for US Dollar
Sam Adelton
Nov. 18, 2006

US Dollar may be getting ready for a long-term bull market. That can be equally bearish for gold and other commodities. The factors influencing dollar’s possible massive bull moves are four. First is the slowing Eurozone that was unexpected and the ECB is foxed at this stage if they should cut rates or raise rates. The Bank of Japan’s refusal to raise rates says Japan will fight tooth and nail to hold the Yen lower. In spite of possible trade backlash the possibility of Japan raising its Yen value is distant if not out of horizon.
The other factor is the lower oil price and resulting lower US trade deficit. While China issued a warning after Democrats took hold of Congress about diversifying out of dollar, they actually bought biggest amount of US Treasuries last week than ever. While China can be upset, people who control China are bullish on America.
Dallas Fed Bank President Richard Fisher said yesterday policy makers have ``no tolerance'''' for inflation above 2 percent. If that is true is really bullish for dollar. Fed will continue to raise rates based on inflation gauge of theirs no matter what happens to the economy.
SMART LIVING & INVST. ARTICLES
Slowing Eurozone, lower oil, Fed’s inflation concern and Bank of Japan’s refusal to raise rates bullish for US Dollar
Sam Adelton
US Dollar may be getting ready for a long-term bull market. That can be equally bearish for gold and other commodities. The factors influencing dollar’s possible massive bull moves are four. READ MORE>>
China’s underemployment of its professionals at its worst – the economic disparity in China
Nina Solkar
The official unemployment rate standing at 4.1 percent in the first nine months. But when you take into account the underemployment factor, the rate is more than 30%. READ MORE>>
Commodities weaken on sluggish demand in Asia - a sign for commodity intermnediate top worldwide
Media Release
The news from India is that the sluggish demnand of commodities has started hurting the prices. READ MORE>>
The biggest bubble of all - derivatives Trading Soars to $370 Trillion – it will be the root cause for global depression
Alan Hershey
Remember 1987. Before the October crash public were arguing about the fact that the market can give an inch away. Finally when the crash came, the brokers did not pick up their phones and Dow plunged for that 20% in one day. READ MORE>>
As predicted oil price in long term bear market - breaks the $57 base
Peter Oberois
The oil price is headed down. The economic fundamentals are weak to support price above $30 a barrel. Most likely oil will surprise all by breaking into the twenties befor pushing somewhat higher again. READ MORE>>
Oil price and housing collapse continue as stocks look down to see the fundamentals to weak to support the recent hefty gains – a 40% correction
Sam Adelton
The real estate hosing collapse continues. Housing starts fell in October by 14.6% to the lowest level in six years. Building permits, an indicator of future building activity, fell for a ninth straight time. READ MORE>>
MORE ARTICLES >>
|