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U.S. Dollar: Comeback Time?
Since the start of 2008, the U.S. dollar has been about as welcome on Wall Street as Sharon Stone in China after her comment that bad “karma” was behind the devastating Sichuan Province earthquake.
See: Nonstop stream of headlines declaring, “Dollar Visions of Doom” (AP, April) -- and -- “Death knell for the Dollar” (Forbes, March) flooding out of the mainstream financial press.
In late May, however, the dollar-bashing bandwagon came to a screeching halt. And, one by one, some of the most loyal passengers stepped off to say the long-awaited “Dollar Comeback” has arrived. On this, the following news items from the time say more than enough:
- “How to play a potential rebound in the beaten-down buck…Investors could see a dollar comeback soon.” (DJ MarketWatch)
- “Traders in the futures market have turned bullish on the dollar versus the euro for the first time since December 2005.” (Bloomberg)
- “It’s not going to be an express train toward a much stronger dollar, but it will trade stronger slowly and gradually.” (AP)
(The Greenback Comeback: Short-Lived or Here to Stay? Right now, the May 30 Short Term Update includes a compelling close-up of the U.S. Dollar Index versus a time-honored measure of momentum that shows how strong the rally really is. Learn More)
News Flash: The dollar “comeback” only just now making its way onto the mainstream radar has been underway since mid-March. In fact, the very same day that the aforementioned Forbes piece rang the “Dollar’s Death Knell” -- our March 14 Short Term Update saw signs of life in the currency’s future. In Short Term Update’s own words:
“The above chart of the euro [the near-mirror opposite of the dollar] carried to potential trendline resistance today. When the euro makes its turn, the U.S. Dollar Index should start a multi-week or multi-month rally phase.”
Bear in mind: the dollar’s advance from its March low continued even as OIL prices soared.
Comeback or correction, catch the next big move in the U.S. dollar BEFORE it starts -- NOT months after its arrival. Short Term Update keeps you on track of the near-term twists and turns in the U.S. currency, and its Euro rival. Get the Details Here.