Dilemma for the Dollar

As the US Dollar continues to deteriorate, Front page headlines suggest to seasoned traders that the worst may be over for now. But last Friday while panic seemed to run rampant over comments from China that they may be moving their US Dollar Reserves into other assets - US Secretary Paulson was adding fuel to the bonfire of the greenbacks pleading for  China to float the Yuan.

US Treasury Secretary Paulson Speaks with Forked Tongue

Lets analyze this for a moment: The US has a strong Dollar Policy?? Who’s dollar is he talking about? This is as ludicrous as the propaganda that importing illegal immigrants and shipping US jobs overseas is good for US workers! But I digress… the concept is that if  China floats the Yuan - the US Dollar falls through to basement level 13. Add to that the fact that imports from China will become more expensive. That makes holiday shopping for poison toys more expensive!

What’s Bernanke and the Fed To Do?

Because inflation has supposedly been the primary concern of the FOMC, any further increase in inflationary numbers will make the "data dependent" Bernanke team less likely to want to lower rates. That is until the consumer sentiment numbers come in weak and pressure is added to lubricate a slowing economy - especially as the US election cycle heats up through primary season.

Question of the Week

If you were going to accept a job at an international company with a huge salary - What currency would you want to be paid in? Which country would you like to have your money parked in? You can Answer by clicking on the link below.

Will Pound Rebound After Giving Back Over 640 Pips?

From the Friday Nov 9th London Open through Monday the US Dollar staged a slight comeback. The Pound fell from 2.1161 to 2.0519. However, this may be short lived as Candlestick "Tweezers Bottom" on the 4 hour chart may currently signal a rebound.

Euro Gives Back 233 Pips and Bouncing…

Testing 25% Retracement on 30 minute chart

While Dollar Crumbles Against Yen Loses Over 560 Pips

Carry Traders Threatened or Sliced and Diced?

Not sure what to do with this information? Want to learn how to trade better with more proficiency, more successfully - Quickly? Click Here to Get a Free Checkup on Your Trading Skills and Get a Free 30 Minute Consultation with IEN Sr. Technical Analyst and Trader Jerry Furst.

Jerry Furst  broadcasts weekly on FX Street with "1stonForex the Week Ahead" and facilitates and presents his own live educational workshops. Jerry is an active trader, educator, and Founder of Investors Education Network (IEN), he is also a mentor and trading coach to select clients.