U.S. Dollar Crushed . . . .

[macdon02]

I have a few contacts and the story i am hearing is two fold, Apple for example are repatriating USD but they are already long USD assets but thru off shore tax havens and have hedged their usd exposure ( no point making 2% a year on the interest if you get killed on the usd exposure)Secondly a friend at BOA says their research alludes to some number north of 700 billion eur has to be sold by USA corp under this new HIA policy\they talk to most USA corps)

one thing for sure we have Japan,China on hold buying treasuries the we have the FED QT then we have corps selling bonds to repatriate profits and then we have governments borrowing vasts amounts everyday. This is against a back drop of higher inflation and higher interest rates ,No wonder the yields are ripping.

How it's explained to me....

[biglentil]

The USD has lost 14% of its value in the past year against a basket of other currencies that are also losing purchasing power. The USD compared to a basket of all indicators such as gold, bitcoin, real estate, oil, food.... the situation is much much worse. That does not bode well for the world's reserve currency. To add more pressure on the USD factor in the alternative trading system Russia and China are turning on at this very moment (a Yuan backed by gold with convertable oil futures)(their version of SWIFT). Also consider the attractivness of decentralized cryptocurrencies where peer to peer transactions can be made quickly without a middleman, next to no transaction fees, and without exchange fees. IMO a mountain of USD is coming home to roost

[monte]

Trump likely wants a lower USD to make imports more expensive. I thought I read the US Trade deficit is growing.

He put forward a budget that leaves big deficits. That can't be supportive of the USD.

Interesting times.

[Stampsguy]

Trump definitely wants a lower dollar but I think it has more to do with helping the exporters. Going to make it harder to compete on grain sales for us.

[sumdumguy]

I believe the US is intentionally trying to drive their dollar down to make their exports more saleable and improve their trade deficit. A low dollar is beneficial to their economy as some of our best export years came with a very low Cdn dollar.

[biglentil]

Thats great but reckless devaluation of the reserve currency does not encourage its use by the rest of the world. Trust has been broken and its quickly becoming a hot potato.

[sumdumguy]

A hot potatoe? You wouldn't know it by Las Vegas.

[farming101]

CAD same old same old...Recent pop above 80 was the latest opportunity to short.

http://www.cbc.ca/news/business/canada-stock-market-performance-laggard-1.4526473 http://www.cbc.ca/news/business/canada-stock-market-performance-laggard-1.4526473

http://www.canadianbusiness.com/investing/canadas-stock-market-is-the-worst-performing-in-the-world-right-now/ http://www.canadianbusiness.com/investing/canadas-stock-market-is-the-worst-performing-in-the-world-right-now/

[biglentil]

TSX to the moon!

[farmaholic]

That's enough negative waves out of you 101.

Those are ugly charts.

I wonder if it's a partial result of current government ineptitude. I know the "circus" rolled into town Oct 2015, but maybe it took a year and a half for them to prove just how bad their circus performance was going to be..... when our markets parted ways on or about Feb 2017.

Is it all oil's fault?