Dollar strength will not be a straight line….. nevertheless, dollar lows are almost certainly behind us.
– “Calling A Bottom In The Dollar”, Goldman Sachs
… the euro ‘rubber band’ is stretched as far as it’s ever been stretched. That means expect a rise in the dollar, and a fall in the euro.
– Steve Sjuggerud, “The Best Speculation In The World Right Now”, Daily Wealth, August 8, 2008
There are really two big stories in financial markets right now and they’re related: oil weakness and dollar strength. That’s driving everything right now – including the powerful stock market rally over the last 2 weeks.
Goldman Sachs this morning issued a report titled “Calling A Bottom In The Dollar” that resulted in a continued surge of the dollar against the euro – from $1.55 in the middle of last week to $1.48 today. That’s a 4.5%, 1 week move – a huge move for currency markets.
I’ve called the top in the Euro vs. $ twice before this year:
“Looks Like A Top In The Euro”, Top Gun FP, February 7, 2008
“Front Page WSJ Article On Bernanke’s Speech Yesterday”, Top Gun FP , June 4, 2008
I’m calling it for a third time: the dollar low versus the euro is in!!!!