How I spotted a new trend in the dollar

A pause in the dollar rally should come as no surprise, says John C Burford. The signs were there all along.

I have been focusing of late on the US dollar by following EUR/USD as a proxy, because the US dollar holds the key to what all other markets will do especially with the stock markets at highly stretched valuations. Gold has suffered in this environment and has broken an important chart point this morning. I hope to cover gold next week.

But in recent weeks, the dollar has been zooming upwards much to the confusion and consternation of the large army of dollar bears (who remain in denial). Yet US stock markets have been resilient in the face of this deflationary behaviour, so far. But you can only fool some of the people some of the time.

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John is is a British-born lapsed PhD physicist, who previously worked for Nasa on the Mars exploration team. He is a former commodity trading advisor with the US Commodities Futures Trading Commission, and worked in a boutique futures house in California in the 1980s.

 

He was a partner in one of the first futures newsletter advisory services, based in Washington DC, specialising in pork bellies and currencies. John is primarily a chart-reading trader, having cut his trading teeth in the days before PCs.

 

As well as his work in the financial world, he has launched, run and sold several 'real' businesses producing 'real' products.