Red-Hot Resources

"Luck is not chance, it’s toil; fortune’s expensive smile is earned.”

Tuesday, December 19, 2006

Another chart for ya!

Here is a chart of the US dollar. We may not be ready to stick a fork in this counter-trend rally yet, but that's coming. Today's action was not good for dollar bulls. It was blamed on raised expectations for improved economic activity in Europe, which in turn raises expectations that the European Central Bank will be raising rates soon. With the Fed fence-sitting on rates -- not likely to cut soon, but no way in heck are they going to raise with the housing market on life support -- the dollar suddenly starts to look overpriced compared to the euro.
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