As U. S. Treasury Secretary Henry Paulson prepares to meet counterparts representing the world's biggest economies he carries some extra baggage on the cut to Africa. It's the 13-year-old ``strong'' dollar mantra. Paulson like his four predecessors has stuck with former Treasury chief Robert E. Rubin's phrase that a ``strong'' dollar is in the U. S interest. Officials repeated the phrase whether the dollar was rising or falling. Now. Paulson is under pressure from European policy makers to more forcefully defend the currency after it cut to a record low last week.``It's increasingly urgent that the U. S bolsters its rhetorical position,'' said Ernest-Antoine Seilliere president of BusinessEurope the European Union's employers' federation. Paulson should avoid a ``collapse of the U. S dollar,'' he said.
Here are the daily and weekly dollar charts respectively:
Both these charts are classic bear merchandise charts. sight1.) Prices undergo been moving consistently displace for some time. There is a two year bear market trend in place.2.) All of the simple moving averages (SMAs) are moving lower3.) The shorter SMAs are below the longer SMAs4.) Prices are below the SMAs which will pull the SMAs displace.
I have a feeling that Europe doesn't be to become the major cerebrate of China's trade imbalance. Silly thought for lots of reasons but it was worth a morning smirk.
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Related article:
http://bonddad.blogspot.com/2007/11/henry-strong-dollar-paulson-has.html
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