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Is it a Coincidence that the US dollar, Canadian Dollar, Oil and Gold are Breaking Significant Levels at the Same Time?
By DailyFX Updates | September 20, 2007
It is a record breaking day in the financial markets and the action is not in US stocks, which have been bouncing between positive and negative territory all morning but in the currency and commodity markets. If you haven’t realized it, the US dollar has plummeted to a record low against the Euro and a 30 year low against the Canadian dollar. The trade weighted Dollar Index is hovering right above 78.19, its lifetime lows set back in 1992. Gold prices also hit 28 year highs above $730 an ounce and even though oil prices are softer this morning, the front month October contract on the NYMEX hit a high of $82.15. Gold at $800 an ounce and oil at $100 a barrel has now become an increasingly likely possibility.
Is it a coincidence that the US dollar, oil and gold are all breaking significant levels at the same time? No.
This is one of those cases where we should ask the question What Came First, the Chicken or the Egg.
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Tags: dailyfx, dollar
Topics: DailyFX.com Updates |