If Uncle Ben’s plan has been to devalue the dollar through QE4 – he’d better get his ass in gear. Thus far since the announcements of “QE forever” – the USD has done little more than trade sideways against most of the majors, and has GAINED considerable value against a number of others.
The USD has traded near parity against the Canadian Dollar for the past 6 months, with only a few cents in fluctuation. Both the Aussie and the Kiwi currently sit at levels seen going back a full year – and for the most part have made little sustained ground on ol Uncle Ben.
The Yen has been devalued recently, to such an extent as to represent a complete reversal of trend going back some 5 years! So absolutely zero reflection of USD devaluation there. And the GBP (Great British Pound) has taken such a beating as of late – as to have LOST 600 pips to the USD.
For the most part the only major making any headway against the USD has been the EUR – and even at that, is still trading at levels we’ve seen many, many times over the past several years – with little or no major effect or concern. In “range” if you will. Gold has been pounded into the ground – and in dollar terms – where’s the printing? where’s the devaluation?
So…short of encouraging investors to continue buying stocks and bonds (with the knowledge that “fed confetti” should keep prices elevated) the current suggestion that the “dollar is being devalued” hasn’t really even taken hold – opening up some fantastic trade opportunities when one considers that…THE USD DEVALUATION HASN’T EVEN STARTED YET.
THE USD DEVALUATION HASN’T EVEN STARTED YET.