Dollar Goes Higher as Stocks Falls Down on European Debt
The US dollar gained today against all
Die Welt claimed that Germany insisted on restructuring of Greece’s debt. Spokesman Christoph Steegmans said in an interview that the German government has “no knowledge” about about the plans for restructuring of the Greek debt. The Standard & Poor’s 500 Index of stocks slipped 0.8 percent. The Thomson Reuters/Jefferies CRB Index of raw materials was little changed, following the advance by 0.9 percent and the decline by 0.8 percent.
The US economy gave reason for optimism as today’s macroeconomic data confirmed the economic recovery in the North American country. The inflation grew 0.4 percent in April, following the 0.5 percent advance in March. The Michigan University wrote in its preliminary estimate that the consumer sentiment index rose from 69.8 to 72.4 this month.
EUR/USD fell from 1.4244 to 1.4116 today as of 21:14 GMT, following the advance to 1.4340. USD/JPY slipped from 80.93 to 80.33 before trading at 80.77. USD/CHF went up from 0.8838 to 0.8925.
If you have any questions, comments or opinions regarding the US Dollar, feel free to post them using the commentary form below.
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CategoriesEarlier News About the US Dollar:
- Dollar Looks Down as Commodities Strive Up (2011-05-12)
- Positive Nonfarm Payrolls Give Dollar Basis for Rally (2011-05-06)
- Dollar Goes Down as Economy Demonstrates Strength (2011-05-02)
- US Dollar — Loser of the Month (2011-04-30)
- Dollar Closer to 2009 Highs as FOMC Plans No Rate Hikes (2011-04-27)
2 Comments
As an investor in Silver, I am worried about a possible top in the recent price due to the drop in the dollar. It appears to me that the dollar cannot fall much below its present level and that siiver cannot therefore rise much above its present level. So what about the pundits that predict $100 silver and $2,500 gold? Are they wrong? I think so. Recently, silver and gold have been inexorably linked. So neither can achieve those levels, right?
At he end of June, QE2 is supposed to end. If that happens, gold, silver, and other commodities will probably fall in dollar value. Therefore, A huge selloff could then occur.
The wise investors would certainly anticipate this and make corrective measures such as selling short or simply closing their positions.
On the other hand, Some are predicting the US dollar losing its reserve currency status due to the National Debt and budget deficit.that would lead to hyperinflation in the US. Should this occur, The Fed would be obligated to raise interest rates to curb inflation.
What’s an investor todo?
I’d stay off of silver. Hoping for a dollar collapse in order to gain from silver rally is a strange conception. I’d rather invest in something more real then (real estate, businesses outside US that don’t cater to US, etc.) But that scenario looks unlikely to me.