I hope PIMCO is wrong this time…

You know that we at FXstreet.com are mainly paid in USD so I’m a USD supporter… Go USD go!

Pimco Says Dollar to Weaken as Reserve Status Erodes by Bloomberg

Update
I hope Mr. Buffett is wrong too…. It seems to me too many people has to be wrong in order me to be happy

Warren Buffett warns budget deficit may harm dollar by The Telegraph

Some readings for the day:

Is this the death of the dollar?
The Telegraph
Border guards in Chiasso see plenty of smugglers and plenty of false-bottomed suitcases, but no one in the town, which straddles the Italian-Swiss frontier, had ever seen anything like this. Trussed up in front of the police in the train station were two Japanese men, and beside them a suitcase with a booty unlike any other. Concealed at the bottom of the bag were some rather incredible sheets of paper. The documents were apparently dollar-denominated US government bonds with a face value of a staggering $134bn (£81bn).
Full Story

Other Stories:
Goldman to make record bonus payout - The Guardian
TARP Banks Stop Paying The Government Its Dividend - The Business Insider
No Credit for TARP Banks - New York Post

U.S. Says Bonds Seized in Italy Are ‘Clearly Fakes’
By Bloomberg
June 18 (Bloomberg) — U.S. government bonds found in the false bottom of a suitcase carried by two Japanese travelers attempting to cross into Switzerland are fake, a Treasury spokesman said.
“They’re clearly fakes,” Stephen Meyerhardt, a spokesman for the U.S. Bureau of the Public Debt in Washington, said yesterday. “That’s beyond the fact that the face value is far beyond what’s out there.”
Full Story

I couldn’t stop reading it… incredible!

Francesc

Suitcase With $134 Billion Puts Dollar on Edge
by Bloomberg
June 17 (Bloomberg) — It’s a plot better suited for a John Le Carre novel.
Two Japanese men are detained in Italy after allegedly attempting to take $134 billion worth of U.S. bonds over the border into Switzerland. Details are maddeningly sketchy, so naturally the global rumor mill is kicking into high gear.
Are these would-be smugglers agents of Kim Jong Il stashing North Korea’s cash in a Swiss vault? Bagmen for Nigerian Internet scammers? Was the money meant for terrorists looking to buy nuclear warheads? Is Japan dumping its dollars secretly? Are the bonds real or counterfeit?
Full Story

Is the Dollar’s Rally Over?
The dollar has recently moved to the bottom of the trading range that is has respected versus most major currencies since the beginning of the year. Since the middle of last year there has been a tight correlation between the value of the dollar and risk aversion. When risk aversion rises, the dollar tends to strengthen and vice versa. The recent rise in stock markets and the tightening of credit spreads has been associated with the depreciation of the dollar over the past few weeks. However, the correlation between risk aversion and the greenback has not always been so tight, and we expect that the effects of economic fundamentals on the value of the dollar will sooner or later reassert themselves. Because we expect that the United States will show signs of economic stabilization and eventual recovery sooner than other foreign countries, we look for the dollar’s uptrend to resume after this short-run correction runs its course. We are not ready to throw in the towel on the greenback.
Full Report

It seems I can beguin the year happy

You know that we support USD strength as we get paid in USD and we live in the EUR zone.

EUR/USD: Resuming bullish trend by Danske Bank

I´m hopping that a break below yesterday’s low at around 1.3310 will demolish Danske’s picture and EUR/USD could be testing 1.2970. But I´m seing Nicole Elliot at Mizuho Bank recommending a buy at 1.3515; stop below 1.3300.

EUR: Buy at 1.3515; stop below 1.3300 by Mizuho Bank

The ods are not with me

Francesc

USD index is consolidating from the late Oct high at 87.85 and is still seen as a correction, with eventual new highs above 87.85 favored after. Also, the market is trading in tighter ranges from that high and appears to be forming a pennant/triangle, generally seen as a continuation pattern, and adding to the view of an eventual new highs. On a very near term basis, these patterns break down into 5 legs, raising potential for a final test of the base (currently at 84.30/40), before resolving sharply higher.

USD index-daily-nov10$ index, bullish pattern still forming….