From Gold Scents:
As many of you already know, I expected the dollar index to put in a major three-year cycle low sometime this year. The normal timing band would have been for a bottom in the spring. The recent breakout and move to new highs has confirmed that the May bottom did in fact mark the three-year cycle low. As expected, that also marked the top of the cyclical bull market in stocks.
It's widely expected that the Fed will announce operation Twist at today's FOMC meeting. Obviously, if printing several trillion dollars didn't save the economy, then rotating the Fed's balance sheet from short-term interest rates to long-term in the attempt to hold down the long end of the yield curve isn't going to have any effect at all as the approaching recession intensifies. Interest rates are already at historic lows.
Interest rates aren't the reason why people are not borrowing...
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More on the U.S. dollar:
Why it could be "risk off" all over again next week
A "game-changing" chart you need to keep an eye on
The U.S. dollar could make a big move as early as today