The Daily Look As at November 9, 2014

The Asian markets have opened and the US Dollar Index is retreating, allowing several currency pairs to rise. There could be some volatility for traders as this week goes on, different countries will be addressing their economic concerns and perhaps trying to position their currencies so as to spur employment.


Here is a chart of the US Dollar Index and you can see the reversal pattern and today's bar indicating a drop. Also notice the divergence between the price and the indicator, there may be a significant price adjustment coming. Or... the rise may continue unabated, Divergences are not always indicative as to what is happening.

We will get more of an idea as to what may becoming in the currency markets this week once the European markets open for trading in a few hours.

In the mean time I have a couple articles that you may find interesting. It may be that China will want to upset the US and the current currency arrangements. 

The articles are showing that several currencies are rising as the US Dollar eases off. It is difficult to say if this move is temporary or long term, the recent move by the Bank of Japan to increase asset purchases was quite a surprise to many governments, the effects are still unknown.

We will know a lot more as days pass.

Have a great week ahead.!!



China hoarding gold to challenge US dollar? - USA TODAY

Sun, 09 Nov 2014 13:32:15 GMT
China hoarding gold to challenge US dollar?USA TODAYIn a world filled with fiat currencies, how important is gold's role in the financial system? Proponents often view the precious metal as a hedge against economic chaos, while critics typic ...

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Australian dollar jumps on US jobs data - The Australian

 Sun, 09 Nov 2014 20:17:21 GMT
The US dollar fell against all major currencies after non-farm payrolls disappointed analyst expectations. The US economy added 214,000 jobs in October, compared to forecasts of 235,000. BK Asset M ...

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US Dollar mid-term top makes Precious Metal and Energy Stocks a Buy - The Market Oracle

Sun, 09 Nov 2014 13:33:14 GMT
I decided to do an important update of the US Dollar Index, because Friday's rise in Gold and gold stocks alongside oil indicated a likely top. I have been e ...

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Why a Strong US Dollar is the Ultimate Economic Stimulus - The Market Oracle

Sun, 09 Nov 2014 13:33:14 GMT
The strong dollar has resulted in an interesting feedback loop: as the value of the dollar increases a combination of steady U.S. economic growth and corresponding weakness in E ...

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Ringgit opens slightly higher against US dollar - New Straits Times Online

Mon, 10 Nov 2014 02:23:51 GMT
KUALA LUMPUR: The ringgit was traded slightly higher against the US dollar in early trade on buying support for the domestic currency. At 9.30am, the local unit was quoted at 3.33 ...

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