In case you missed it, the beaten-up dollar has been making a comeback this week.
Traders are scratching their heads, trying to figure out if this is a major turn or just another mild correction, including yours truly.
Now, I’ve said before that a major correction in the stock market could save the dollar now. Or as my colleague Ashish said recently, “Wall Street could rescue the buck.”
I suggest everyone gets comfortable with $1,000 gold. We’re not likely to see gold drop below that anytime soon. As gold continues to rise, key currencies will also prosper.
One is the South African rand, because South Africa happens to be one of the world’s largest miners/exporters of gold.
However, I like this one better…Australia.
This morning the news was buzzing with Goldman Sachs’s latest take on the British pound.
The esteemed Goldman analysts predicted this month that sterling will appreciate 9% versus the euro to 84 pence by year-end, and by 14% to $1.85.
Here’s our experts take on it….
In case you missed it, there was a “supposed leak” from the Fed this week. The Fed-Heads are saying they want to drain off the record amount of cash.
It’s worth paying attention to statements like this.
The decline of the dollar has taken center stage. Everyone seems to know why the greenback is faltering. But the question of when or if the dollar will reverse its downtrend remains unanswered.