Gold Market Wire
News, analysis and commentary for gold traders and investors
US Dollar Goes on a Tear
September 29, 2021 - (Gold Market Wire) - As we opined on Monday, the US Dollar was primed to move higher - and boy did we get it, in spades, today. Big moves against both the Euro and Sterling (GBP); and we are of the opinion that there is more where that came from.
Starting with the Euro:
Three weeks of utter mayhem for the Euro. This time, we look like we are going to gun for the big number - 1.035, and see what transpires. We see no reason to cover the Dollar length. . This one has further to go, and is starting to have the hallmarks of a real, bone fide currency crisis in the making. Hold on to your hats. The Eurozone, in debt up to its eyeballs, political dysfunctional in extremis, with its core economy (Germany) now swinging hard left, and its 'functioning' economy (Poland, Hungary, i.e. 'Vise grad') slowly drifting away, is a complete and total mess.
Ditto Sterling, where the UK, is now truly starting to resemble a second world economy, complete with failing infrastructure, food insecurity and a panic petrol buying.
There's more where that came from, in our humble opinion.France wants to start and EU army. The UK wants the military to secure both petrol supplies and defend its home fishing waters from France (and, one would assume, Spain), while getting ready to take on the Chinese military thousands of miles away from home - using Australia as a base??? When you throw Canada (politically rudderless), and the mess that American politics has become - its all becoming a bad, joke. So where does the money flow? One supposes to the currency home of the largest western military force - the USA/Dollar. Where else, exactly, is it to go?
Panic is in the air now. We haven't seen the last of this move. Continuation of the trend looks highly likely. The Metals are holding on, just, but in the big picture, they are doing better than expected. We're not bullish the Metals just yet, but we remain impressed by the simple fact they have held as well as they have.