U.S. Dollar quietly surging higher and this morning kisses the closing level of July 24th last year, which marked multi-year highs.
Dollar Chart (DXY) still very impressive reversal to strength looking over last 1.5 years.
Gold has made a short term move over $1,575 which is greater than the 20 day moving average a key level for many watching the yellow metal.
The DXY, more familiarly known as the “dollar index,” is up 3% since the month began. That may not look like a huge move, but given the longer-term trend and the recent past, it’s enough to give emerging market traders pause.
Talking about shifting planting patterns and China’s hunger for corn is all well and good, but in an environment where the U.S. dollar is riding high, just about all major commodity markets are feeling the pressure. Food is not immune.
Every year now since 2001, gold prices have rallied. Whether you believe this is simply a reaction to a structural liquidity bubble or a symptom of a much larger process at work, every emerging markets investor needs to pick a side.
The dollar has made a powerful move downward in the last week, giving emerging markets and commodities a lift. Today we touched the 50-day support line for the first time since November, so things are getting interesting.
Did someone say there was a problem with the U.S. job market? Most of the numbers coming out today indicate a potential upside surprise in tomorrow’s unemployment stat, which could play into the dollar’s recent strength.