Dollar flirting with 72

[68Camaro]

Low so far tonight has been 73.019. Looks like it's still going down... Might hit into the 72s tonight. This is new territory. It has been lower, but required QE1 to save it. Apparently QE2 is having the opposite affect.

Will some unknown entity try to prop it up for another round?

Headed to bed. Will make for an interesting cup o coffee in the morning...

[aloneibreak]

been watching for a while now

its almost certain to dip to the 72's by morning

thanks bernank !

[psi]

What sort if measurement is that number based on?

[68Camaro]

What sort if measurement is that number based on?

See

viewtopic.php?f=9&t=3641&start=548

[68Camaro]

been watching for a while now

its almost certain to dip to the 72's by morning

thanks bernank !

Looking at what happened overnight - yup, it passed into the 72s. Back and forth across the line all night. Just above 73 at this second.

Alarms bells should be starting to ring in the distance...

[franklin]

CNBC interviewed some lady named Patterson with one of the big banks today and she said the fall was 'orderly, just like the Administration hoped it would be' and also said since it had not caused the stock market to drop, it was of no real concern. I wished Santelli was interviewing her because the moneybabe didn't really question her reasoning.

[68Camaro]

CNBC interviewed some lady named Patterson with one of the big banks today and she said the fall was 'orderly, just like the Administration hoped it would be' and also said since it had not caused the stock market to drop, it was of no real concern. I wished Santelli was interviewing her because the moneybabe didn't really question her reasoning.

That's 'cause its out of their control, they don't know how to fix it, but they want the masses to not worry, not panic... Sad but true. It's master manipulation. Or maybe not so masterful, but sad that the gullible want to believe it, so don't question.

[68Camaro]

Dollar continues to flirt with 72, bouncing down to near 72.7 before rising a bit.

One of the major commentors that I read believes that soon the EURO will be be sacrificed against the dollar via the worsening European banking crisis, which, given that the EURO is the dominant currency in that index, will - for a time - hide the fact that the dollar is continuing to sink relative to gold and other stronger currencies. So the DX index will need to be taken with a grain of salt during events like that.

[68Camaro]

Anyone else watching the dollar index over the past couple of weeks? There has got to be some major national-entity sized policy decisions behind some actions to keep propping it up. It is orbiting around 73, and everytime it takes a slide down into the 72s there is a yank back up over 73. This does not look like normal market action...

[TXBullion]

Anyone else watching the dollar index over the past couple of weeks? There has got to be some major national-entity sized policy decisions behind some actions to keep propping it up. It is orbiting around 73, and everytime it takes a slide down into the 72s there is a yank back up over 73. This does not look like normal market action...

I have been checking on it as well once I learned of it a couple of weeks ago. Seems to be high 72s each time I check....

[68Camaro]

Tore up today, nearly 74. Haven't had to a chance to dig into the why of it.

[68Camaro]

Euro in a dive relative to dollar. But overall it's a small amount, less <2%. Doesn't account for the far larger slide in PMs.

[TXBullion]

What percent of the time would you say that when the dollar goes up , pms go down and vis versa? Is it clockwork? I have not been watching it long enough to be aware.....

[68Camaro]

What percent of the time would you say that when the dollar goes up , pms go down and vis versa? Is it clockwork? I have not been watching it long enough to be aware.....

On significant currency moves I usually see a one-to-one correlation in direction on short-term changes, but if there is something else driving PMs (regardless of whether up or down) in addition to the dollar (as is often the case), that correlation it can get completely overwhelmed. So while I think there was some interaction yesterday with the dollar, there were clearly several other (and more dominant) factors at work on top of the dollar. I saw headlines yesterday blaming this on the dollar - that's far too simple an answer.

Three of my favorite quotes (or mis-quotes):

Assumption is the mother of all screw-ups.
Wethern's Law of Suspended Judgement

Complex problems have simple, easy-to-understand, wrong answers.
Grossman's misquote of H. L. Mencken

"It is a capital mistake to theorise before one has data. Insensibly one begins to twist facts to suit theories, instead of theories to suit facts."
Sherlock Holmes (A. C. Doyle)

[68Camaro]

Euro continues to drop. They are in a mess.

In that context, the dollar is "worth" more only with regard to Europe. By all other objective measures, the dollar continues to inflate and be worth less.