The dollar has been in rally mode for over 8 months now against most of the other currencies but still has been struggling against the Euro. This might just be about to change as the Euro looks like it may just play catch up to the downside, thus sending the dollar sharply higher.
Ever since reaching a high of 1.12, the Canadian Dollar has been in retreat and rightfully so.
Inflation in Canada is as bad as it has always been and the Canadian dollar will soon reflect just those conditions.
I am looking for the Canadian dollar to move to the 80 cents on the dollar level.
The British Pound for a long time was the currency that just kept plugging along against the dollar as our greenback went down the tubes.
Just when you thought the Pound had made a major top and should work lower there was yet another sharp leg higher.
These tables however have seemed to have reversed themselves and now it seems that Sterling may be on the verge of yet another sharp move lower.
Of course all of this will come to the surprise of the Dollar Bashers who simply find it irresistible to short the dollar. The Middle East may just start licking their wounds two fold as the dollar rallies against their short sales and oil potentially begins a strong corrective pattern. It will be interesting to see how it plays out, but all of their short positions when covered could send the dollar screaming higher.
Lets wait and see what happens.