Financial Times/Eva Szalay and Colby Smith/7-13-2020
“Escalating political and health risks in the US and rising optimism about the global economic recovery should keep the dollar sliding over the next few months, according to analysts. Large banks turned bearish on the greenback in late May, citing drastic cuts in interest rates and a flood of liquidity unleashed by the Federal Reserve, as it tried to alleviate the economic effects of the pandemic.”
USAGOLD note: The real test is not how the dollar performs against other currencies but how it performs against good and services. Yesterday’s .6% consumer price index uptick sent the dollar lower while gold reversed its downtrend and headed higher.
