Excerpt from the Daily Pfennig:
"...damage to the dollar could end up being quite noticeable... I was reading this morning that a couple of reserves managers at Central Banks are looking to dispose of extra dollars they have on hand, and are looking at the euro as the destination for those reserve dollars. And why not? The euro has seemed to gotten past the persistent problems that have plagued the single unit currency for the past 7 years, and if things continue to improve in the Eurozone, we could very well see the stimulus measures like negative deposit rates, become a thing of the past... So, I ask the question again, why not euros?
The rest of the currencies would seem to be in line for some love from reserve managers too, as these reserve managers are keen to diversification rules. In June of 2016, 9 months ago, I wrote about a change in sentiment among traders, that would lead to a new weak dollar trend. Well, that new weak dollar trend has been slow to develop, but develop it has, as the euro has risen from 1.09 to 1.24 and Gold has risen from $1,212 last July to $1.350-ish today...
But if the HUGE buys from Central Banks come to fruition, then this nascent weak dollar trend could very well get some legs and begin to run. I'm just saying... Wink, wink...
Gold continues to be held back each time it rises to the $1,350 level, which as I wrote in last weeks Dow Theory Letters, seems to be the line in the sand that the price manipulators have drawn. I still hold out hope that the gig will be up on the price manipulators soon, and then Gold will be allowed to move freely through price handles" ~Chuck Butler
(Recv'd via email)
