P O G AND U S D, page-2

Salti. I agree that the US$ looks too strong and a sell off will probably come, but HUGE?
For the DXY too fall considerably, something has to rise. ATM the USEconomy, on figures given, is stronger than other currencies it trades against. Europe is a nutcase ATM, Italy in recession and France and Spain following and even powerhouse Germany is stagnating. Japan pop is ageing, economy shrinking and it's exports are falling. UK and Canada are at best on par with USA.

So when you consider that the DXY is weighted thus;

Euro ...57.6%
Japan..13.6%
UK........11.9%
Canada.9.1%
Sweden.4.2%
Swiss.....3.6%

How can the US$ fall bigtime. Only way I can see if we change the weighting and allow the Yuan and to a lesser extent Rupee into the index.

If the Chinese and Japanese sell their USBonds and US$ what are they going to buy? The Japanese don't want a stronger Yen and the Yuan is controlled. The Chinese may sell US$ and buy Gold, but they already own a lot. If one country (China) owns too much gold, the rest of the world will bypass gold and render it useless. They will find another way too trade. Unless and until China becomes the world's biggest economy and makes their Yuan convertible to gold, that is, as per Bretton Woods in 1944.

In the short to medium term, IMO any weakness in the US$ will be controlled IMO

	Column 1	Column 2
0	Euro	57.6 %
1	Japan/yen	13.6 %
2	UK/pound	11.9 %
3	Canada/dollar	9.1 %
4	Sweden/krona	4.2 %
5	Switzerland/franc	3.6 %