Can you believe how much leverage the media got today out of this tiny little move in the USD? Let's look deeper...
Whenever pundits get themselves all exceited about dollar strength when in fact it does not exist, I am shocked by the short-sightedness and complete lack of technical analysis which accompanies such declarations. And yet, the weaker hands in gold and other commodities often are played by such media hounds... turning a miniature dolar move into major temporary losses for commodity traders.
First of all.... we all know the USD had to appear strong for the G8 summit and today's dog and pony show from Paulson, Dimon, et al. How is a dollar bump achieved, you ask? Unwinding portions of the remaining yen carry trade.
Here's what caused the USDX to bounce off the critical 72-line yesterday and into today:
And before you go listening to those babboons on TV calling these dollar moves significant, take a look at the chart:
Again, I am as disturbed by the fate of the USD as any American citizen... this is nothing short of a tragedy for the U.S.... but investing is about being realistic and knowing how to seperate truth from fiction. Unfortunatey, any talk of strength on the USD at this point is pure manipulative fiction.