Friday, August 08, 2008

Summer Rally: King Dollar Roars Back, Oil Plunges


The U.S. Dollar index for major currencies reached its highest level this year, and is at the highest level since December 21, 2007 (see chart above). Oil fell today by almost $5 per barrel in the spot market to $112.43 (brent spot) and $115.20 (WTI) and below $115 in the futures market. Stock market rose by +300 points.


At 8/08/2008 7:49 PM, Anonymous Anonymous said...

Coincidence that this happens just at the start of the Bejing Olympics?

At 8/09/2008 4:12 AM, Blogger Unknown said...

Maybe concidence but cooling of Chinese economy won't last for long, maybe two years or so after the Olympics. Iexpect much less, maybe less than a year.

After a correction of the USD to about 1.35 basis EUR or abouts, we could see another drop to new lows unless trade deficit improves and US rates go a lot higher while inflation is contained.

With a trade deficit like that, the only viable policy of US is a sliding USD and we could see EUR/USD around 2 by the end of 2009unless US politicians change their mind about transfering US wealth to other nations like China and India.

At 8/09/2008 2:02 PM, Blogger bobble said...

every journey begins with the first step.

here's a little perspective

At 8/09/2008 2:23 PM, Anonymous Anonymous said...

You have about a week to week and a half and then I think you may get that smile slapped right off your sill face. 1328 don't forget to sell.

At 8/09/2008 2:33 PM, Blogger Rohit said...

Surely helps airline companies! Here is my opinion. Feel free to object !


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