Tags: rick | pendergraft | Dollar | Rally | Euro

Dollar Poised to Rally Against the Euro

Tuesday, 05 Apr 2011 08:11 AM

By Rick Pendergraft

Share:
  Comment  |
   Contact Us  |
  Print  
|  A   A  
  Copy Shortlink
Last week I pointed out how the bearish sentiment toward the dollar had reached its most bearish level since 2007. When bearish sentiment toward the dollar is high, it stands to reason that bullish sentiment toward some other currencies would be high.

In the current scenario, it is the euro that is hitting extremely bullish readings.

The Commitment of Traders report from last week shows that large speculators have a net long position of over 60,000 contracts. The last time the large speculators were holding more than 50,000 contracts long on the euro was in October 2009.

Right after the bullish sentiment on the euro peaked, the euro itself peaked at the exchange rate of $1.50. The euro fell from November 2009 until May of 2010 and the bottom came when the exchange rate reached $1.19.

I look for the dollar to rally against the euro and other currencies over the next few months. Should this rally take place, it will have an adverse impact on gold and oil as the futures trade in dollars.

In fact, a good portion of the rally in oil and gold can be attributed to the falling dollar.

© 2014 Moneynews. All rights reserved.

Share:
  Comment  |
   Contact Us  |
  Print  
  Copy Shortlink
Around the Web
Join the Newsmax Community
>> Register to share your comments with the community.
>> Login if you are already a member.
blog comments powered by Disqus
 
Email:
Retype Email:
Country
Zip Code:
 
You May Also Like
Around the Web

Newsmax, Moneynews, and Independent. American. are registered trademarks of Newsmax Media, Inc. Newsmax TV, NewsmaxWorld, NewsmaxHealth, are trademarks of Newsmax Media, Inc.

MONEYNEWS.COM
© Newsmax Media, Inc.
All Rights Reserved