IT IS HAPPENING IN REAL TIME RIGHT IN YOUR FACE....................
Posted by EXOGEN on September 12, 2014 at 10:05am
Dollar heads for best run of gains in 17 years
By Patrick Graham Reuters I hour ago
LONDON (Reuters) - The U.S. dollar headed for its ninth straight week of gains on Friday, some measure of how the economic fortunes of the United States and its major economic peers are diverging after six years of financial turmoil.
A broad rise for the greenback was the main bet of most major investment houses this year but it has taken a very long run of relatively good U.S. numbers and a surge in concern over European and Japanese growth for the currency to deliver.
Investors are convinced a Federal Reserve meeting next Wednesday will rubber-stamp a shift towards higher interest rates in 2015, as suggested by research from the U.S. central bank this week.
That drove benchmark 10-year U.S. Treasury yields to their highest in over a month on Friday , while European stocks shrugged off weakness in Asia to inch higher. (.FTEU3)
A 2 percent rise on the week took the U.S. currency to a six-year high of 107.39 yen (JPY=). Against the euro it gained 0.2 percent on the week and was broadly flat on the day at 1.2921 (EUR=).
"We do seem to have reached a tipping point both on expectations for interest rate rises next year and the dollar," said Simon Derrick, head of currency research at Bank of New York Mellon in London.
"The rally finally seems to be getting the attention it deserved."
The dollar index, a measure of the greenback's value against a basket of six major currencies, remained on course for its longest streak of weekly gains since the first quarter of 1997.
A range of political shocks to the system, from turmoil in the Middle East to fighting in Ukraine and a referendum on Scottish independence, have added to support for the greenback against emerging and developed world currencies.
But the euro, hammered by worsening economic numbers and a further easing of monetary policy by the European Central Bank in the past month, has begun to find some support in the last few days.
Sterling wobbled ahead of the latest poll to show next week's vote on whether Scotland will break its 300-year old political union with England as too close to call.
In general, nerves on currency and equity markets have eased a little on the back of surveys showing the "No" camp edging back in front.
Britain's top equity index rose for the first time in six sessions (.FTSE), driven by Scottish-based shares such as Royal Bank of Scotland (RBS.L), soft-drink group AG Barr (BAG.L) and utility SSE (SSE.L).
"There's a lot of hesitation at this point," Saxo Bank sales trader Andrea Tueni said.
"People are reluctant to take any new positions ahead of the Scotland referendum, but also ahead of the Fed's meeting next week, which could turn out to be a real game-changer."
The rise in volatility on currency markets -- at a four-year high on sterling on Friday -- has prompted some investors to pare back on carry trades, where they borrow at low rates in euros and yen to buy higher-yielding assets such as commodity-linked or emerging market currencies.
Victims included the Canadian dollar, which plumbed a five-month low of C$1.1030 (CAD=D4), while Australia's dollar hit a six-month low of $0.9053 (AUD=D4).
The dollar gains have also pushed oil prices to their lowest in two years (LCOc1), while gold sank to an eight-month trough and copper fell to a three-month low.
In contrast, the dollar's gains on the yen were considered positive for Japanese exports, corporate earnings and equities. The broad Topix index (.TOPX) added 0.2 percent and reached its highest level since July 2008.
Stocks elsewhere in Asia fared less well as investors fretted that even the hint of a shift in Fed policy might spark a withdrawal of funds from emerging markets. MSCI's broadest index of Asia-Pacific shares outside Japan was down 0.3 percent at one-month lows.
A strong result from U.S. retail sales at 1230 GMT would only add to speculation the Fed might refine, or even drop, its commitment to keeping rates low for a "considerable time" after its asset purchase programme ends. That has put yields on two-year Treasuries (US2YT=RR) on track for their highest weekly close since April, 2011.
"The market will be on the defensive going into next Wednesday's Fed meeting due to the growing contingent who are convinced a hawkish language change is imminent," said William O'Donnell, head of Treasury strategy at RBS.
"But bearish expectations may surpass what the Fed will deliver," he added. "We think September is a bit premature for a language change and that the Fed is just looking to have the conversation."
Dollar gains, commodities lose as markets mull Fed risk Reuters
GLOBAL MARKETS-Dollar gains from Fed risk, Japan stocks hit highs Reuters
GLOBAL MARKETS-Dollar's rise pressures commodities amid Fed anxiety Reuters
FOREX-Rates speculation sends dollar on best run in 17 years Reuters
FOREX-Rates speculation sends dollar to 6-yr peak vs yen Reuters
EXOGEN This is also tied to all of the Margin calls yesterday & Metals
wilbur grodan container ships will be changing course... USD is about to get slaughtered...
EXOGEN Do you know what this MEANS????
Dave > EXOGEN I think it's an adjustment for things to come. I.e. Revalue and devalue as other currencies increase in value
EXOGEN > Dave GCR is what it is called
ace waterman Will the dollar stand stronger now in currency exchange?
nana7 It means the GCR is here! Yippeee!!
Dave > EXOGEN Right. Prop the dollar because devaluation is coming in the future
nana7 > Dave Yep, you got it Dave.
EXOGEN You have to increase the value of the WORTHLESS FRN's so they can be converted at a minimum of 1:1 with the TRN/USN.
EXOGEN Remember last week the Federal Reserve mysteriously paid of 7Trillion in USA debts as well
Ron Burgundy > EXOGEN That makes sense. Drive gold down, dollar rises, pushes the FRN to a price closer to the TRN
EXOGEN > Ron Burgundy Correct
Dave > nana7 Yes considering the thought that the dong would be two to one to our dollar. Wow. That t shirt made in Vietnam is going up!
Julie > EXOGEN Please tell us what it means.
EXOGEN > Julie it means debt is being paid off!!! How can the US Dollar climb when our economy, and unemployment rates have not made any major moves.............There is only 1 answer and this is what we have been looking for and waiting on...........................Countries are not even accepting the USD/FRN's yet our dollar is INCREASING
Kudu70 > Julie As part of the GCR, almost all national debt world wide will be reduced, if not eliminated through the revaluation of currency, friendly debt forgiveness, 'China family' paying, etc. Whatever...
One Scenario we have heard: If UST has over 4 trillion Dinar acquired at the 1166 rate (or better during the Iraq war), and it is now 3.71 rate = $14.84 Trillion. Our debt is $17 Trillion (?). this Paydown of debt makes the US$ look much more attractive as an investment now.
Another scenario: Debt forgiveness (I don't see how this works for the US, but lets walk through it.) If let's say China decides to forgive a lot of the US debt we owe them, then again, the US$ looks like a better investment, so the US$ goes up.
Those are my two guesses based on rumors I have heard over the last several months. Dang...almost a year now.
Pole R. Bear And, Gold is showing a steady decline.
Pat Hennessey Gold is dropping like a rock. Down under $1230. AMAZING!!!
EXOGEN Gold will continue to DROP!!!
nana7 Gold stuck near 7-1/2 month low; set for worst week in 3 months
Abundant Clarity Altogether now- GCR!! GCR!! GCR!! YAAAAAAYYYY
EXOGEN This also means the bonds you kept hearing about have entered the system
LVegas All very good news. BUT WHY has it stopped the 800#'s and trickling down to us?
EXOGEN > LVegas The 1-800 number rollout plan is EVOLVING
EXOGEN September 12, 2014 at 11:01am http://www.monex.com/liveprices/
robert uk pound is down 10% i heard on news with the referendum next week ,will drop further if a yes vote
EXOGEN The Iraq currency auctions are about to come to a 100% Hault!!
Abundant Clarity > EXOGEN SHUT THE FRONT DOOR!!!!
EXOGEN > Abundant Clarity lol YEP
Lucky9 > EXOGEN now that is real news...
HealthyDoc Amazing how this is really playing out exactly as planned. What's more interesting is how something this phenomenal and on a world wide scale is being done in such secrecy that 98% of the population is totally unaware. If they can keep something this massive such a secret I can certainly see how they are able to do so much to our food, health, education, finances, without people seeing what is really happening and who is behind it. An eye opening experience for sure.
EXOGEN September 12, 2014 at 10:59am Ain’t No Stopping Us Now