The Dollar looks ready to rally

Stephen Eisel · Post by **Stephen Eisel** » Sun Apr 27, 2008 5:47 pm

When the Federal Reserve cuts interest rates for a seventh consecutive time this Wednesday, it will begin to wind down a pernicious campaign that has flooded the market with cheap dollars since last summer. At the same time, the whoosh of air from Europe's deflating credit bubble puts new pressure on the European Central Bank to begin cutting borrowing costs in order to goose growth.

The strategy shifts by central banks will drive a greenback comeback against the overpriced euro, turning back the 15% slide that since August has lifted the euro -- to a record $1.60 last week -- even as the dollar continues to struggle against the undervalued currencies of Asia.

Monetary policy isn't the only catalyst for a healthier dollar. "A lot of what has happened since last summer also is emotional, and that can change on a dime," says James Paulsen, Wells Capital Management's chief investment strategist. Among other drivers: mounting evidence that the credit crisis loosening its grip stateside is still tightening across the Atlantic, and a growing belief that the U.S. economy could bottom and rebound before Europe's.

The rehabilitation, ironically, is driven by a weak dollar, which makes bargains of our exports, fills Manhattan's 65,000 hotel rooms with European tourists, and entices foreign giants from Ikea to Toyota to open factories here to exploit our increasingly cheap labor.

Already, the dollar has begun to strengthen against commodity-driven currencies from the Canadian loonie to the South African rand, and odds are it is close to a bottom against the euro, sterling and most developed-world currencies. On top of that, "negatives about the dollar are more fully discounted compared to the potential positives," says Marc Chandler, Brown Brothers Harriman's currency strategist, who expects the euro to pull back to test the $1.40 threshold this year

Stephen Eisel · Post by **Stephen Eisel** » Tue Apr 29, 2008 2:08 pm

The dollar (clicky)

Stephen Eisel · Post by **Stephen Eisel** » Fri May 02, 2008 6:24 pm

Dollar news

Tim Liston · Post by **Tim Liston** » Tue Jul 15, 2008 7:44 am

From Bloomberg this morning....

http://www.bloomberg.com/apps/news?pid=20601087&sid=aAcRihZD4Ueo&refer=worldwide

The Fed has shown that the "solution" to our economic woes is more money. Can't be good for the dollar....

Bryan Schwegler · Post by **Bryan Schwegler** » Tue Jul 15, 2008 11:34 am

Or this story from CNN today:

http://snipurl.com/2z0rp

Ivor Karabatkovic · Post by **Ivor Karabatkovic** » Thu Jul 17, 2008 7:23 pm

The state of the economy

:lol:

Jim O'Bryan · Post by **Jim O'Bryan** » Sat Jul 19, 2008 10:15 pm

where do you get your facts!

NEW YORK - Federal rescue plans are all the rage in Washington right now, for what seems to be everything but the dollar. The U.S. currency is not going to get a bailout, even though its steep decline is feeding inflation and straining the economy.

Federal Reserve Chairman Ben Bernanke and other officials have assured us that the government is on the case of the plunging dollar.

Talk is cheap â€” they won't likely do anything about it.

That's because the Bush administration since taking office nearly eight years ago has not supported any U.S.-led intervention in foreign-exchange markets despite the greenback's steep decline. That action would involve buying the ailing currency to boost its value. AP Business

More here

http://news.yahoo.com/s/ap/20080718/ap_on_bi_co_ne/all_business

.

Stephen Eisel · Post by **Stephen Eisel** » Fri Aug 08, 2008 9:51 am

http://finance.yahoo.com/q?s=USDEUR=X

Not a bad day for the US dollar so far

Jim DeVito · Post by **Jim DeVito** » Fri Aug 08, 2008 9:54 am

HA I knew it!!! Welcome back to the Dark Side ;-)

Stephen Eisel · Post by **Stephen Eisel** » Fri Aug 08, 2008 10:14 am

Jim O'Bryan · Post by **Jim O'Bryan** » Fri Aug 08, 2008 10:37 am

Stephen Eisel wrote::D

Stephen

Are you talking about a good day for the US dollar or the Super Bills that are flooding the US from Saudi Arabia and North Korea?

Just curious.

.

Stephen Eisel · Post by **Stephen Eisel** » Fri Aug 08, 2008 12:12 pm

Jim O'Bryan wrote:
Stephen Eisel wrote::D

Stephen

Are you talking about a good day for the US dollar or the Super Bills that are flooding the US from Saudi Arabia and North Korea?

Just curious.

.

The Dollar (more specifically vs the Euro)

sharon kinsella · Post by **sharon kinsella** » Fri Aug 08, 2008 7:18 pm

Stephen -

I can't even believe you posted this.

Keep walking on rainbows kiddo.

Stephen Eisel · Post by **Stephen Eisel** » Fri Aug 08, 2008 7:34 pm

sharon kinsella wrote:Stephen -

I can't even believe you posted this.

Keep walking on rainbows kiddo.

Are you saying that the US Dollar did not have a good day? or the US dollar will not rally?

Stephen Eisel · Post by **Stephen Eisel** » Fri Aug 08, 2008 8:24 pm

Jim O'Bryan wrote:where do you get your facts!
NEW YORK - Federal rescue plans are all the rage in Washington right now, for what seems to be everything but the dollar. The U.S. currency is not going to get a bailout, even though its steep decline is feeding inflation and straining the economy.

Federal Reserve Chairman Ben Bernanke and other officials have assured us that the government is on the case of the plunging dollar.

Talk is cheap â€” they won't likely do anything about it.

That's because the Bush administration since taking office nearly eight years ago has not supported any U.S.-led intervention in foreign-exchange markets despite the greenback's steep decline. That action would involve buying the ailing currency to boost its value. AP Business

More here

http://news.yahoo.com/s/ap/20080718/ap_on_bi_co_ne/all_business

.

Barron's