The U.S. Dollar - Where To From Here
The U.S. dollar represents a gauge measuring the markets’ move toward high return/higher risk ($US falling) or risk aversion ($US rising). Longer term, we expect the U.S. dollar to continue its downward trend as the U.S. government issues massive amounts of new debt. However, in the short term, the dollar is rising as risk aversion grows. A major spike in the $US could cause a lot of commodity selling as speculators are leveraged to the long commodities/short $US trades. The $US is in spike mode.
The U.S. Dollar Index is a weighted gauge against the Euro, Yen, Pound, and three other currencies.
