Counterspin: The US Dollar Index in Context. The Rally is Pure Fiction.
With a barrage of babble coming through the media outlets touting a reversal in the US Dollar, I was finally annoyed to the point of posting this graphic. The chart clearly demonstrates that there is nothing unusual happening with the dollar right now... these minor consolidations have occured at frequent intervals all the way down.
I am deeply disturbed by the decline of the dollar, and I wish this really were a meaningful reversal, as the US economy depends on finding one. However, objectively I know that nothing fundamental has changed to create meaningful support here. This amount of spin being devoted to the dollar right now is understandable, but disconcerting. And to the extent that Fools alter their investment strategies accordingly, it is potentialy injurious. Please be careful here, as this has all the earmarks of a massive headfake.