Monday, July 02, 2007

The U.S. Dollar Approaching The Year Low

The U.S. Dollar was down sharply today and as you can see in the above chart the dollar is close to testing the year low.

I've been bearish on the dollar since June 18th which is when I posted on my other blog that the dollar put in a top.

I remember reading a few weeks ago how everyone thought the dollar had bottomed and that we would see higher prices to come. Whenever I am in the minority as far as my positions are concerned I usually do well.

The past few days have been very profitable for me because I've been fortunate enough to be long the British Pound, Euro and Swiss Franc and all of these currencies are having strong moves to the upside. I'll look to exit these longs if the Euro and Swiss test their highs for the year.

If you are curious as to why I bought theses currencies, you can click the following links where I explain in detail what I was seeing.

Bearish On The Dollar

Bullish On The Swiss Franc

Bullish On The British Pound


MJ said...

Hello Kevin.
I often read your blog and I appreciate the fact that you share your impressive work.

Regarding the dollar and gold... It seems to me that with the dollar as low as it is, gold should be a lot stronger than it is. I believe you wrote about this a while back.

I'm wondering if we see more weakness in gold before we see strength. Any thoughts on the matter?


Kevin said...

Hey Joe,

That's hard to say...I'm not looking to short gold and at the same time I'm not looking to buy gold either because of the way it is acting in the face of a weak dollar.

I know gold rallied today but over the past few weeks gold should be a lot higher given what the dollar has done. I think I am going to leave gold alone for awhile until I see something bullish develop.

beingpossibility said...

Kevin, what in your opinion has caused the dollar to drop so dramatically in the last couple of days? I think it is the world's perception that we are getting our goldilocks economy.

Kevin said...

To be honest with you I really don't know why...and in my opinion most other people don't exactly know why either...

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