Posted on 05/15/2006 2:08:16 AM PDT by oblomov
LONDON, May 15 (Reuters) - The dollar rose sharply across the board on Monday as a fall in global stock and commodity markets triggered general dollar buying against commodity and emerging currencies.
Precious metals such as gold fell sharply on fund-related selling, while European stock markets extended losses on Monday, falling nearly two percent in inflation concerns.
"There's quite a lot of liquidation of various asset classes at the momoment. People are liquidating stocks and gold. Liquidation of gold in general typically benefits the dollar," a UK bank trader said.
Commodity currencies such as the New Zealand and Australian dollars fell sharply against the U.S. currency as commodity prices spiked lower. Other emerging currencies such as the Turkish lira and South African rand also fell as a fall in stock markets raised risk aversion.
(Excerpt) Read more at today.reuters.com ...
Let's hope for oil to soon head in the same direction.
They come back, they always come back.
There is no where else to go.
Exactly. Especially over the next few decades, the Dollar will only gain. Where are europeans to find the return to fund their welfare-state pension plans ? Certainly not by their own over-regulated and over-taxed economies.
Not for long, I think. The trend is not only up, it's accelerating.
"The dollar rose sharply across the board on Monday as a fall in global stock and commodity markets triggered general dollar buying against commodity and emerging currencies."
Upon this news oil prices immediately went up 2$ a barrell fueling a $5.00 rise in gasoline prices. (/Sarcasm)
It was always about speculation. Fed by MSM hype.
You may want to dash that post. I have gotten chastized for linking to Bloomberg before.
Or from the generally lazy work force of some of the member nations.
Interestingly, I am in the process of selling a small airplane I own. One prospective buyer was from Athens, Greece. He's an airline pilot and traveled here to look at the airplane. During his two day stay, I had opportunity to ask him what Greece likes best about being part of the EU. His response? Nothing. Especially the part about France, Belgium and Germany calling the shots.
And the dollar has a long way to go to make up its losses for the past 4 years.
I recently returned from the UK, the only thing I heard there about EU was that their rules forced restaurants to cook hamburger into charred embers and there's a flood of Citroens ("French trash") on the roads.
It's an anomaly, the dollar will soon resume it's decline and gold will resume it's upward ticks. That's what all the fundamentals dictate. The US gubmint is spending and printing too much $$ way too fast.
Oh, no. Gold is at its lowest point since late last week. Better rotate the Y2K stash. The apocalypse is upon us.
What do you mean about the US printing money too fast?
M1 is up only 0.9% over the last year.
This is a much lower rate of increase than the EU, China, or Japan.
You should write a book. I need to get rich.
Bottom Line - The US dollar is in decline against other currencies due to our guvmint's massive spending and debt. That's why the dollar is in a general decline and gold is in a general rise.
But what do you mean about the government printing too much money?
I have read that the government is lying about how much money they are really printing to pay their debts. I can't prove that, and I don't know for sure that it is true, but I do suspect it. It would not be the first nor the last time that segments of our government lied to us.
I am no expert nor advocate for any of these opinions. I just read a lot, and sometimes offer what I have read here on my favorite forum, FR, in the interests of exchange and discussion.
The dollar is in decline due to concern that the Fed will pause on rate increases and capital might flow to others offering greater returns. That likelihood remains to be seen. If gold is rising because the dollar is falling, does that mean the price of gold is not rising in other currencies? Just the dollar?
However, as I said, I have not studied Gold price in relation to other world currencies, so that is only an off the cuff opinion, so take it as such.
Gold has been rising against primarily the dollar for about 5 years. Apart from today, gold has been rising against most other currencies for about 2 years.
IMO, this is a mere hiccup in the POG.
Women and children with gold fillings hit hardest? ;)
Silver declined $1.69 since this weekend most likely because I sold on Friday. Sorry to pull a Hunt Brothers on you, but it's every wo/man for themselves these days. :)
Also it is now known that 40% of China's GDP is in bad loans. China is gonna have an implosion soon too. The good ol'American dollar will still be standing when the Euro and Yen tank.
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