USD Index : Even in war it’s a dog
February 23, 2011 Leave a comment
Risk aversion ? What risk aversion… just look at the US Dollar Index chart below, and it becomes clear there are few takes for the Dollar even with Libya on the verge of civil war. With reports of some supply being cut off from the eastern regions, the USD should bounce a tad, and is a buy in our view at 77.50.
With Bernanke printing several forests worth of paper dollars every few days, we can only imagine how low the USD would be if the Middle East hadn’t blown up. Probably nearer 75.