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The US Dollar Index Is Rolling Over And This Major Currency Is Breaking Out

Author

Michael Swanson
August 21, 2024

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The US dollar index has been fading, dropping, for the past few months, as the interest rate hiking cycle peaked a year ago.

The US dollar index measures the value of the US dollar against the world’s major currencies.

Many are now breaking out against the US dollar, just as the price of gold has been doing.

For instance, the above FXE ETF, tracks the value of the Euro against the US dollar.

Interestingly, what has not been going up against the US dollar is the price of Bitcoin, which has been simply sagging since March.

It doesn’t really trade as a world currency, but is more like a speculative boom and bust instrument. It is the big swings that attract people to it, instead of usage as a safe store of value.

Central banks don’t buy Bitcoin, they buy gold and put it on their reserves.

No “AI” was used to write this email or edit it.

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The latest rally takes bullion's gain this year to more than 22%.

www.mining.com/gold-price-soars-to-new-high-ahead-of-powell-speech

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Job growth in the U.S. for the 12 months ending March is expected to have been much weaker than estimated. Read more.

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Target beats on earnings and revenue, but gives cautious sales outlook for the year

The discounter's sales rose as shoppers made more visits to Target's stores and website.

www.cnbc.com/2024/08/21/target-tgt-q2-2024-earnings.html

Harley-Davidson is dropping DEI policies after pressure from diversity critics

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More than 28% of Americans are searching for new jobs — the highest rate in a decade

People’s fears of losing their jobs are at the highest point in a New York Fed survey’s 10-year history, even as the unemployment rate remains low.

www.nbcnews.com/business/economy/28-americans-are-now-searching-new-job-highest-rate-decade-rcna167368

Market Commentators

Stock Market In A Slow Bleed or a Dead Cat Bounce? » TheTechnicalTraders

Since our last discussion, the market has reversed direction and has ripped to the upside. Will this momentum continue, or is it nothing more than a

thetechnicaltraders.com/memberships/aff/go/wsw1ndow?i=741

Rate Cuts to Fuel Gold but Could Delay Recession

Gold and gold stocks are set to benefit from Fed easing. There is some history of the stock market rallying at the start of Fed cuts before a recession and bear...

thedailygold.com/rate-cuts-to-fuel-gold-but-could-delay-recession

Also Of Interest

Average person knows if their day has been ruined by 8:36 a.m.

How much bad luck does it really take to ruin someone's day? For many Americans, one bad morning can derail everything.

studyfinds.org/day-ruined-by-836am

And…..

Gold stocks, like AEM, are now running away from people, but that is how NVDA looked 12 months ago too. I own AEM and was pounding the table on buying gold, silver, and mining stocks back in March before silver broke out through $26.00 an ounce.

-Mike

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