I´m trying to figure it out, and I think the feds print a lot of dollars whenever they become scarce... thats when powerful runs come after the dollar apprechiated a lot, one times, two times...
few years back with the terrorist attacks in London the pound also got sold, quickly and it put in a 5cents day. That was undone in no time as advised " go with the program". Pound has been awfully shorted and still looks like the proverbial falling knife but against which other currency it should drop, they ain´t any better? Leaves only the yen, the new kid on the block.
Commodities are another thing. The recent gains in commodities are not accompanied by a weakening dollar; they decoupled and in relative terms the dollar is much stronger. Those are fundamental gains, or inflation related gains.
Historically, currencies do not exhbit the same characteristicts like interest rates, or stocks. You don´t need to cover currencies, like stock. Why buy (back) a currency which becomes gradually weaker? The local government prints more of them...(so it goes for the EUR, too: by adding more countries to the system, partly with insufficient economic power, the EUR became bloated, or diluted...). |
