Central Banks Attempting to Rein in the Rise of the US$
Trader Scott’s Market Blog
October 16, 2016
This recent post about the US$ said this: “But back to the US$. I do believe much of the recent rise in government yields (falling prices) is due to central banks (i. e. hedge funds) selling US Treasuries to support their own currencies. They know there is upside pressure on the US$, they can see it. And yes, the Fed will continue to attempt to fight it.” Zero Hedge had this article today talking about that very issue. You are going to see more and more of these stories. There is tremendous upside pressure (the $ permabears keep fighting it) on the US$. The Fed and Central Banks will continue to attempt to slow it down. Good luck with that. I’m always amazed by how many folks, admittedly, much smarter than I am, who have so much faith in the Fed, and all Central Banks for that matter. I have faith in supply and demand, not bureaucracies. Supply and demand will win out in the end. So how far the US$ will go, I don’t know. I’m very long the US$, and I do believe a major (and possibly THE) top in the $ is coming next year. But very short term, it’s close to being a bit overextended.
Trader Scott has been involved with markets for over twenty years. Initially he was an individual floor trader and member of the Midwest Stock Exchange, which then led to a much better opportunity at the Chicago Board Options Exchange. By his early 30’s, he had become very successful in markets, but a health situation caused him to back away from the grind of being a full time floor trader. During this time away from markets, Scott was completely focused on educating himself about true overall health and natural healing which remains a passion to this day.Scott returned to markets over fifteen years ago where he continues as an independent trader.