The US dollar is staring over the edge of the precipice and is ready to plummet. Rather than hand a dollar a lifeline, the FOMC in its announcement yesterday pushed the dollar further over the edge.
The FOMC made clear that it is only a matter of time before the Federal Reserve starts pumping again. So immediately after the FOMC announcement, the dollar fell and the precious metals rose in anticipation of the next round(s) of dollar debasement to come from the Fed’s “quantitative easing” policy.
On June 7th the US Dollar Index’s bear market rally stopped at 88.41. It closed yesterday in New York at 80.44, a 9.0% decline in less than four months. Yesterday’s decline also put the Dollar Index below its 200-day moving average, another important indication that the trend for the dollar has turned lower. The dollar is renewing its long-term downtrend, as we see in the following chart.
Traders can sell short the US Dollar Index here, but there is a better opportunity for your trading capital. Buy gold and silver.
For my specific trading recommendations, see Trading.
James Turk
Free Gold Money Report
Article originally published by the Free Gold Money Report.
James Turk is the founder of the Free Gold Money Report and of GoldMoney.com. He is also the co-author of The Coming Collapse of the Dollar (www.dollarcollapse.com).. Copyright © by James Turk. All rights reserved.
Copyright © 2008. All rights reserved. Edited by James Turk
This material is prepared for general circulation and may not have regard to the particular circumstances or needs of any specific person who reads it. The information contained in this report has been compiled from sources believed to be reliable, but no representations or warranty, express or implied, is made as to its accuracy, completeness or correctness. All opinions and estimates contained in this report reflect the writer's judgement as of the date of this report, are subject to change without notice and are provided in good faith but without legal responsibility.
