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December Strength of the US$: Bull or Byproduct

December 30, 2009 : Permanent Link

A confluence of dubious “positive” economic numbers, supplied by the U.S. government, has given rise to the US$ bull during the month of December.  If we are to believe the financial media, the debate is over: the US$ reigns supreme again. Almost every day over the last few weeks another commentator, analyst or self-styled market guru jumps on the US$ bull bandwagon.

Question: Is it a bull or a byproduct of the animal that is being panegyrized?

The answer of course will evidence itself over time.  For now, it seems a little perspective is in order. Please review the US$ chart below.  As you will see, the December rally, so far, appears to be a bounce in an overall steep downtrend. In my next post, we will review the impact of the December US$ strength on various commodity markets.  I believe, you will find the results…revealing. 
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About Bret Rosenthal

Interpreting the news that moves markets. Principal of RCM, LLC, and founding partner of the Fortune's Favor Family of Funds
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