Louder Death Knell of USD$ = CRASHED to 3 Yr LOW!

[Tony Tan]

https://www.tradingview.com/chart/DXY/Emco7dJs-The-USD-crash/



Long
The USD crash
U.S. Dollar Index (TVCXY) 89.18 -0.07 -0.07%
Dalin_anderson
Jan 7

Trend Analysis Chart Patterns crypto usx USD crash Stocks moon
The dollar has been crashing since 1913 so lets just keep hedging the volatility in cryptocurrency and stocks
people think the stock market is gonna crash and I laugh and tell them its their bank accounts actually crashing
Not the biggest fan of the FEDRESRVE
anways long live cryptocurrency and stocks.
Twitter

https://www.dbs.com/aics/templatedata/article/generic/data/en/CIO/012018/180125currencies.xml

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Global / Currencies
USD sinks to three-year low
Chief Investment Office / January 25, 2018
Dollar-policy doubts pressure the American currency

Photo credit: AFP Photo
The US Dollar Index (DXY) sank 1.02% to 89.21, the lowest in more than three years after Treasury Secretary Steven Mnuchin kicked off the dollar-policy doubts from 4,000 miles away. Speaking in the chic alpine town of Davos, Switzerland, he said a weaker US currency benefits trade and that he is not concerned by its value over the short run. The longer-term strength of the dollar is an indicator of the economy’s health, he added.

For a quarter-century, US Treasury chiefs have espoused the benefits of a strong dollar – so it may be jarring for investors to hear a US Treasury Secretary discuss the merits of a weaker one. But it fits with the Trump Administration’s stance on trade policy aimed at supporting exporters and reducing the nation’s gaping trade deficits.

The pound rallied the most since April as hopes for a soft Brexit and stronger-than-forecast labour-market data bolstered the currency against a weaker dollar. Sterling headed above USD1.42 and climbed against all major peers, as signs that Britain may stay close to European Union rules after leaving the bloc helped the currency extend gains made on the back of strong UK jobs figures. The pound has also benefited from broad dollar weakness, with the British currency advancing nearly 3% this week as market positioning becomes increasingly bullish. It jumped 1.73% to USD1.4242 on Wednesday, the strongest in 19 months.

The euro jumped 0.89% to USD1.2408, the strongest in more than three years. The Japanese yen surged 0.99% to 109.22 per dollar, near the strongest in more than 19 weeks. – Bloomberg News.
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https://www.rt.com/business/416928-dollar-fall-low-mnuchin/

US dollar crashes to 3yr lows against major currencies
Published time: 25 Jan, 2018 08:35
Get short URL

© Gary Cameron / Reuters
The greenback has touched the lowest level against major global currencies since 2015. This comes after the US treasury secretary announced that Washington favors a weak dollar in trade.
Addressing the World Economic Forum in Davos, Switzerland, Steven Mnuchin said that a weaker dollar “is good for us as it relates to trade and opportunities.”

Read more
Russian ruble prepared for global expansion as dollar dependency drops
The ICE US Dollar Index, which measures the American currency against a basket of six rival currencies, dropped 1 percent to 89.245 on his speech, falling below 90 for the first time since December 2014.

Mnuchin added, however, that “in the long term, the strength of the dollar is a reflection of the strength of the US economy and is and continues to be the primary currency, in terms of the reserve currency.”

“Bears reacted immediately, sending the already out-of-balance currency to the south. The USD is going through a very vulnerable period, in vain trying to find excuses for recovery. And under such conditions, such statements made a particularly painful impact on the currency,” Mikhail Mashchenko, an analyst at the social network for investors eToro in Russia and CIS said in an email to RT.

Gold touched the highest level in at least 52 weeks, trading at $1,368 per troy ounce, buoyed by the weak dollar.

US President Donald Trump is also attending Davos to stress his ‘America First’ policies, White House officials said. Trump has made no secret of the fact that his administration prefers a weaker US dollar to boost trade.

For more stories on economy & finance visit RT's business section

 

[Taksama_b_l]

Dotard Trump MAGA USD like this?

Chiak-sai-bastards USA.

 

[kryonlight]

This is Trump's currency war with China. A lower dollar helps with USA exports and a higher yuan makes chink produce more expensive for Americans. Americans will start to ditch chink-made goods for USA-made ones. Time for Xi Jinping to find a new hole to dump his trash.

 

[tun_dr_m]

This is Trump's currency war with China. A lower dollar helps with USA exports and a higher yuan makes chink produce more expensive for Americans. Americans will start to ditch chink-made goods for USA-made ones. Time for Xi Jinping to find a new hole to dump his trash.

FAT HOPE!

No matter how low the USD, USA is never competitive in this world & especially against Chinese. USA products will be POOR QUALITY, OUT-DATED TECHNOLOGY, POOR EFFICIENCY, POOR PRODUCTIVITY, SLOW DEVELOPMENT. Cheap no use. China is now the only place in the world can produce FAST, GOOD, CHEAP, EFFICIENT, and RAPIDLY IMPROVING.

10 Dotard Trumps also can not save America!

 

[mojito]

This is Trump's currency war with China. A lower dollar helps with USA exports and a higher yuan makes chink produce more expensive for Americans. Americans will start to ditch chink-made goods for USA-made ones. Time for Xi Jinping to find a new hole to dump his trash.

Also to punish mercantilistic countries like China for propping up US dollars in order to boost their own exports. You buy some more? Haha!

 

[nayr69sg]

Strong US economy. Dow Jones at record highs. Rising interest rates (therefore curbs inflation domestically). US dollar weakens. Good for exports! Trump is doing his job.

 

[taksinloong]

Strong US economy. Dow Jones at record highs. Rising interest rates (therefore curbs inflation domestically). US dollar weakens. Good for exports! Trump is doing his job.

What can US export? Potatoes? Fries? US economy is mainly import much more than export in values. US made products are no attractive outside, cheaper because of currency will have little help. The popular US brands like Gay Phone are not made in USA.

 

[AhLeePaPa]

https://fer4.com/finance/making-america-great-again-by-destroying-the-dollar-is/

Making America great again by destroying the dollar is …
admin | January 25, 2018

No politician in the United States wants Americans to be worse off and deliberately take steps that are bad for an average American investor.

However the policy of destroying the dollar, though well-intentioned, will lead to American investors being worse off in the long term.

In the short term, investors are celebrating a lower dollar. But it is also prudent to start thinking of defensive steps to preserve wealth.

The dollar fell to a three-year low after comments by the Treasury Secretary Mnuchin on Wednesday in support of a weaker dollar. It was the biggest one-day fall in 10 months. Before his inauguration, President Trump declared that the dollar was too strong. This started the decline in the dollar. But Mnuchin’s comment is like drilling a hole in a dam that is holding back a flood. Initially after the hole is drilled, only a small amount of water flows out. But if the hole is not repaired or more holes are drilled, pretty soon the dam loses its structural integrity and causes a flood. In this case if the flood happens, it will be average investors losing money in the stock market, like they did in 2008 and 2000.

I am politically agnostic. My sole focus is to help investors.

My longtime readers know that I have often expressed opinions that were unpopular at the time. To understand this minority opinion, let’s start with a chart.

The chart
Please click here for an annotated chart of the Dollar Index Bullish Fund

UUP, -0.66%

that represents the dollar index

DXY, -0.70%

Please note the following from the chart:

• The major support is far below where it is trading now. This means from a technical perspective, there is still a lot of room for the dollar to fall farther.

• Before the present fall, a pattern of lower lows was already established.

• After lower lows, the rally failed.

• Now there is another lower low after Treasury Secretary Mnuchin’s comment.

• Collectively all this paints a very bearish picture for the dollar. However in the short term the dollar is very oversold and a bounce up is typical.

Ask Arora: Nigam Arora answers your questions about investing in stocks, ETFs, bonds, gold and silver, oil and currencies. Have a question? Send it to Nigam Arora.

Stocks
In the short term, a weaker dollar is good for stocks, as the earnings of the companies that are in S&P 500

SPX, +0.16%

and Dow Jones Industrial Index

DJIA, +0.56%

go up. This is reflected in the moves in broad-based ETFs such as the SPDR S&P 500 ETF

SPY, +0.13%

and the PowerShares QQQ

QQQ, +0.29%

Earnings of popular tech stocks will also go up because they derive a significant portion of revenue from abroad. Examples of companies benefiting are Apple

AAPL, -0.92%

Facebook

FB, +0.87%

Alphabet

GOOG, +0.88%

GOOGL, +1.03%

Netflix

NFLX, +3.11%

Nvidia

NVDA, +0.72%

and AMD

AMD, -0.51%

Read: Here’s what Trump’s weak-dollar policy means for the stock market

Gold and silver
Gold and silver are priced in dollars. For this reason they generally move inversely to the dollar’s moves. The SPDR Gold Shares ETF

GLD, +0.46%

and the iShares Silver Trust ETF

SLV, +0.38%

have moved up on the weaker dollar. Also moving up are ETFs for precious metal miners

GDX, +0.85%

junior gold miners

GDXJ, +0.25%

and leveraged gold miners

NUGT, +2.03%

Oil
Just like gold, oil is also priced in dollars. When the dollar moves down, oil generally goes up. ETFs of interest are the U.S.Oil Fund

USO, +0.04%

and VelocityShares 3x Long Crude Oil ETNs

UWT, +0.06%

Why this is bad for American investors
Here are the reasons why a lower dollar is bad for average American investors in the long term:

• The dollar has been the world’s reserve currency. This has allowed the U. S. to engage in both fiscal and monetary policies that have benefited American investors. A lower dollar endangers the reserve currency status.

• Would you buy stock in a company where the management is actively seeking ways to lower the price of the stock? A country is no different. The United States government is actively seeking to lower the value of the dollar. Would you want to hold the dollar?

• As other countries start questioning the value of holding the dollar, it will negatively impact the dollar’s status as a reserve currency.

• The United States is a highly indebted country. A large portion of the debt is financed by foreigners. Why would foreigners want to buy U.S. debt when the value of the dollar is falling?

• If the demand by foreigners for buying the U.S. debt wanes, interest rates will go up.

• The United States is a big importer. As the dollar weakens, the cost of the imports will go up. This will cause inflation.

• Rapidly rising inflation is bad for the stock market.

• To control rapidly rising inflation, the Federal Reserve will raise interest rates.

• Rapidly rising interest rates are bad for the stock market.

• Foreigners now buy a significant amount of U.S. stocks. With the dollar falling, foreigners will have less reason to buy U.S. stocks. This will be bad for the stock market.

What to do now
Investors ought to start thinking about assets that aren’t dependent on the U. S. economy and also about assets that benefit from a lower dollar in the long term. I’ll address this more in a future article.

Disclosure: Subscribers to The Arora Report may have positions in the securities mentioned in this article or may take positions at any time. All recommended positions are reviewed daily at The Arora Report.

Nigam Arora is an investor, engineer and nuclear physicist by background, has founded two Inc. 500 fastest-growing companies, is the developer of the adaptive ZYX Global Multi Asset Allocation Model and the ZYX Change Method to profit from change in trading and investing. He is the founder of The Arora Report, which publishes four newsletters. Nigam can be reached at [email protected].

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[eatshitndie]

in anticipation of that i've invested 69% of my cash in usd in real estate. that was in mid 2017. a small 6.9% of that cash is spent on buying a brand new porsche. :p

 

[tanwahtiu]

Ban Chinese entry for 100 years. That was what they did before to make themselves eat potatoes n onions to be 1st world cuntry.

Told u taxpayers money wasted of his visit to China. After visit he go back to destroy u like the angmoh Palmerston bastard did to China in 1800s.



All Blond hair asshole are worse than ah neh snakes. Double headed snake.

 

[Ang4MohTrump]

Trump Supporter click here to watch video directly recorded off Loser Dotard's mouth on STRONG USD his dream:

https://www.cnbc.com/2018/01/25/dol...p-says-it-will-get-stronger-and-stronger.html


Dollar rallies off a 3-year low in sudden reversal after Trump says it will get 'stronger and stronger'

• The dollar erased its losses and went positive after President Trump said Treasury Secretary Steven Mnuchin's remarks about a weak dollar being good for the economy were taken out of context.
• Mnuchin kicked off a two-day 2 percent decline in the dollar index when he made the remarks at the World Economic Forum in Davos, Switzerland Wednesday.
• By Thursday, Mnuchin tried to backtrack the comment by saying his comments were no different than in the past, but the market read it as a change in the long term U.S. policy to back a strong dollar.

Patti Domm | @pattidomm
Published 2 Hours Ago Updated 2 Hours Ago CNBC.com






















President Trump: Ultimately I want to see a strong dollar 3 Hours Ago | 00:30

The dollar reversed its losses and went positive Thursday, after President Donald Trump said the greenback will strengthen because of the growing U.S. economy and that his Treasury secretary's comments favoring a weak dollar were taken out of context.

Trump commented Thursday, in an interview with CNBC, after the dollar declined about 2 percent in two days to a three-year low. It began to fall sharply after Treasury Secretary Steven Mnuchin said a weak dollar is positive for trade in remarks at the World Economic Forum Wednesday.

Mnuchin attempted to clarify his remarks Thursday, but the currency market continued to react to Mnuchin's comments as though he was veering away from the dollar policy that's been in place since the 1990s.

"I think they were taken out of context, cause I read his exact statement and I'll tell you where I stand, which ultimately is very important," Trump said in the interview witih CNBC. "No. 1 I don't like talking about it because frankly nobody should be talking about it. It should be what it is, it should also be based on the strength of the country - we are doing so well. Our country is becoming so economically strong again and strong in other ways too, by the way that the dollar is going to get stronger and stronger and ultimately I want to see a strong dollar."

The full interview will air on 'Squawk Box' Friday at 6 a.m. ET.

The dollar index had been down more than a half percent Thursday, but erased those losses after Trump's comments aired on CNBC. It was at 89.29, higher by 0.1 percent on the day.

Trump's comment on the dollar was unusual in that presidents do not usually talk about the currency, but Trump was also unusual in that he spoke about dollar weakness last year, just several days before he was inaugurated. Strategists credit that remark with helping to turn the dollar into a weakening trend, and the dollar index has lost 11.3 percent over the past year.

"He's trying to tow the line. It looked like Trump was trying to walk back Mnuchin and reiterate a strong dollar policy. It remains to be seen if the actions back the words. It was a pretty clear endorsement of a strong dollar policy," said Tony Crescenzi, senior portfolio manager at Pimco. "If he said anything to oppose the dollar policy, its weakness would have intensified."

"It shows how sensitive the markets are around the discussion on U.S. dollar and trade in general," said Mark McCormick, North America head of foreign exchange strategy at TD Securities. "With the Trump administration, there's a lot of confusion around what the actual preference is."

The dollar swoon this week was even more pronounced because the U.S. had also just slapped tariffs on Asian-made washing machines and solar panels, raising fears of protectionism. That helped the dollar weakness gain momentum, as Mnuchin's comments were also perceived as trade-related.

"We've been leaning in this direction, where the dollar was stretched on the downside, and you needed a trigger to get the position squeeze going. That's what Trump did now. He's given everyone leeway to close their trade," said McCormick, pointing to a reversal in the euro which had been as high as $1.25. It was at $1.23 in late trading.

Some strategists said the Treasury secretary did not intend to alter U.S. policy, though his comments were less clear than prior Treasury officials, who had even if initially unclear, ultimately repeated with frequency that a strong dollar was in the best interest of the U.S.

A weak dollar could be initially good for exports and multinational profits, but could cause a decline in dollar assets, including Treasurys. This year, the U.S. is doubling the amount of debt it is issuing and will need to attract foreign buyers to the Treasury market.

Marc Chandler, head of fixed income strategy at Brown Brothers Harriman was in Davos at the time of Mnuchin's comments, and said attendees at the annual forum were confused by them. "I think they're unsure. Many people agreed with my interpretation that it's more incompetence than ill will."

He said the timing of the trade actions may be unrelated. "They've been pent up for awhile. They were expected," said Chandler. "My sense is the U.S. is not going to alter its dollar policy because of a meeting of the one percent in Switzerland."

David Woo, head of global rates and foreign exchange at Bank of America, also did not see Mnuchin's comments as signaling a shift in policy. "Rather, we see the statement in its entirety as reaffirming existing policy on the dollar as a reflection of US economic fundamentals, while acknowledging a more competitive USD valuation versus this time last year," he said in a note.

But Woo did say that other administrations have faced the same issue where the dollar is weakening and their policy is for strength.

"Treasury secretaries want to have their cake and eat it too," he said.

"If the U.S. economy were not doing well, I think this administration would be more prepared than previous administrations to weaken the dollar," he said.



Patti DommCNBC Markets Editor

 

[Ang4MohTrump]

 

[Hangover]

This is Trump's currency war with China. A lower dollar helps with USA exports and a higher yuan makes chink produce more expensive for Americans. Americans will start to ditch chink-made goods for USA-made ones. Time for Xi Jinping to find a new hole to dump his trash.

Yes sir, it's a currency war.
Even Korea's export crashed all of the sudden.

 

[syed putra]

USD will rise. Current depreciation due to steven mnuchin error. Trump will talk the USD to rise at davos today.
And everything you use in the smartphone, the technology probably everything invented, from the US, hardware and software.
Car msnufacturing, mass production. Its US. In fact, apart ftom gunpowder, what has china invented? Paper was in egypt first.

 

[taksinloong]

USA is unique DISADVANTAGED and at RISK globally, because it's ONLY currency is used by a Global Economy, which are many times over of USA own economy.

What does that mean?

It means that USA is just a MINOR USER or SMALL OWNER of it's ONLY Currency. The majority owners and users are all the other countries, importing exporting oil and gas, steel, plastic, food, cars, weapons, planes, services, gold & other metals, ships, etc etc in USD$, USA is NOT IN CONTROL OF these activities and transactions. But these transactions affect the VALUE of USD currency.

What is the risk?

If money was blood, than USA's blood is only 25% within it's own body, 75% is OUTSIDE of it's body. It that not ultra risky? Any contamination, fraud, counterfeiter, destruction, sabotage can happen to USD completely out of USA's control. But when USD is sick / dead than USA is sick / dead. There is nothing much USA could do to protect itself. If some countries use their state mint to print super-quality fake USD in quantity 10X of real USD, and circulate globally, US can have nothing very effective to stop this, for just example.

No other countries in this world have a currency so vulnerable like this.

MAGA can not be helped by rigging the USD currency, either high or low, not effectively. In the economy wise, competitiveness / in-competitiveness isn't all about prices.

Take for example of one key USA export - weapons. Helicopter; Jets; Tanks; Missile; combat vehicles; radars.. Highest Lucrative product of USA. ALWAYS @ World's Highest Prices. Does it get any better competitiveness due to weaker USD? Will sales double if USD went really low? Will there be no sales if USD sky high? The effects will be very negligible. Most buyers buy US weapons like SUCKER PEE SAI PAP for political reasons. Not feasible to buy from other than USA, hence, must spend the world highest prices for quite useless craps. When USA international Status got fucked by China & Russia, these sales will be GONE, and regardless how cheap US weapons will NOT SELL.

Previously in Cold War Era, USA sold weapons tremendously, due to Soviet, Europeans paid tremendously for USA rubbish junks for decades. Now even Kim Jong Nuke did not make Kim Chi Moon Jae-In order much of USA weapons, the rather, Moon refused to pay for THAAD missiles! The rather Korean exports cheaper and more welcomed weapons to the market and TOOK AWAY MUCH OF USA weapon customers! Did Kim Jong Nuke made Japan increased orders of USA weapons, very little, too little compared with the Soviet past.

Then we look at the next most lucrative item, Boeing Airliners.

This has more and more competitions, 1stly Airbus, now, Russian, Chinese & Japanese coming in. Plus global economy / travel slummed in the last decades, Boeing sales not very promising. Big customer like China will make their own planes and also steal some of Boeging's customers. Will USD up/down cause Boeing Export to up/down much? I say insignificantly.

USD up/down will affect only US products that are non-unique and have no other advantage among many competitors. Such as food, grains, textile, but USA is not very big in these products. These products can not MAGA much even if became world' most successful business. It is NEVER so lucrative business, and USA is not strong to compete with all these 3rd world.

For oil / gas, USA is importer much much more than exporter. Weaker USD currency means USA competitiveness will drop globally, because it have to fork up more dollars to pay for the same oil it uses to make any products.

China is the big oil buyer and is getting to be bigger buyer further and further, and Chinese Yuan replaced USD to be the main oil trading currency. Lowering the global importance of USD currency, and hence less governments will tolerate indulge with USD risks and troubles, nor will than render financial resources to protect / help the sick USD. When trades abandon USD for Chinese Yuan, all governments will not give a shit to let USD die of it's own causes (Obama Dollar Crisis & Dotard Crisis).