Sep 8, 2017

US Dollar: Worst Year Since 1985?

The US Dollar had a substantial rise based on the expectation that the Federal Reserve would be able to normalize interest rates and unwind its massive balance sheet plus a general belief that the Fed's experiment had actually succeeded and that the economy was in better shape as a result.

So the dollar kind of rode that rally and now I think it's starting to surrender those ill-gotten gains. The dollar is on pace for its worst year since 1985. We just finished the month of August, a down month for the US Dollar. It's been down six months in a row and so the weakness in the dollar is one of the reasons that the price of gold has 01:25 been rising.