Forex Analysis : USD Index … Still a dog
Bernanke’s denial of inflation is of course madness, as is the Obama administration’s ‘strong dollar policy’ as can be seen on the USD Index chart as it heads further south, with no signs of a reversal just yet.
• As Asia and much of developing Africa and Latin America (not to mention Europe) grapples with strong inflationary pressures, the USD Index is better at telling the truth than the Fed or US Administration, and what it is saying is that the fiat currency debasement tools employed by the Fed are working, and have helped create a situation where prices are raging, but are not showing up in the Fed’s own inflation calculations because of their very high eighting to home prices in the States rather than food or energy. Lies, damned lies and government stats we hear you say.
• The USD Index has no support of note apart from the 2009 lows at 74.19-74.23