Forex

The surprise is on the downside this time.

A heck of a week for the buck so far, right? Granted we still got a lot of time left before it sticks, but the weekly bar on a chart of the US Dollar Index looks rather impressive: An obvious reason is going to be Greece and Eurozone difficulties driving the euro lower and both directly and indirec

Market Directions: The Sterling Election

Have the improved prospects for a Conservative victory in the upcoming British election and the reduced chance of a hung parliament revived the sterling, or has the recovering British economy provided the boost? A little more than a week ago, the pound came within twenty points of its post crash low

Gold: Time for a little dirt nap?

Real recovery may mean gold is due for a little dirt nap: 1) Other real (physical) asset investments in the real economy (land, plant, equipment, etc.), that appear relatively cheap at the beginning of recovery thanks to the impact of recession, compete with gold as an investment class once again. 2

British Pound in for a Sharp Fall?

In my December 26 Money and Markets column I focused on the outlook for 2010, and the looming threats to global risk appetite. I warned that sovereign debt problems posed a major threat to global economic recovery. And I concluded that this threat represented a catalyst for a return of global risk a

Win-Win Scenario for the Dollar

The debt problems in Dubai threw a wrench in the happy-go-lucky risk trade of last year. And since then, the perception of the state of the global economy has been unraveling. All of the sudden, the world isn’t as safe a place as was thought just months ago: Global stock markets are falling, c

Why the Dollar Rally Has Legs

In December I wrote a Money and Markets column making the case for a bottom in the dollar. And since then the evidence supporting that thesis has grown. I also said there are plenty of ugly currencies out there that will likely take scrutiny away from the dollar. In fact, in recent weeks I outlined

Pressure Mounting on the British Pound

The UK economy is in a tough spot … it’s the only major economy that has yet to emerge from recession. It’s running the largest budget deficit of any industrialized country. And its central bank has thrown everything, including the kitchen sink at the problems trying to stimulate e

Will the Euro Become the Most Hated Currency for 2010?

For the better part of 2009 the U.S. dollar was the world’s most hated currency. But it’s looking increasingly likely the tables could turn in 2010. And the euro could take over that unenviable title. In recent weeks we’ve seen a surge in scrutiny over sovereign debt. First, it was

What Could Lift the Dollar?

The most recent employment data in the U.S. came in significantly better than what was expected. And the financial markets reacted in a different way this time. Interest rates went screaming higher, the stock market surged, gold fell and the dollar shot up. In a normal environment a stronger dollar

Weighing the Dollar Alternatives

The dollar has suffered a landslide of scrutiny and negative sentiment over the past eight months. Yet just nine months ago it was the currency that every investor and central banker in the world wanted to own! The world economy was on the ropes, and the dollar represented safety. Since then, fear h