6/11/2005

Things financial: the dollar has ridden into the resistance area of long standing. If it breaks through 92 and change, watch out. Is this suddenly strong dollar bad for us? I don't know, I suppose it is psychologically good. But always consider that a strong dollar attracts foreign investment and because the EU won't change rates (two years with the same rate) our dollar is soaking up the loose change from all over the world; so far only into our bonds, not stocks. Then there is the possibility that we have made a secret deal with OPEC to strengthen the dollar while they lower the oil price. (Ho ho that's rich) Otherwise we are paying even more than we know for oil. $55 in cheap dollars vx $55 in stronger dollar. All this has more to do with the EU bitch fight. Here is the spread chart between the EC and the dollar. As I've said repeatedly, the EC has no trading record and it is a mistake to place much reliance on the spread. This chart showing the dollar Swiss Franc spread will show you exactly the historical trading pattern. This monthly chart takes you back to 1991. Oh, BTW the brain dead UAW is negotiating for changes in the health benefits, but don't hold your breath. There will be even more layoffs at GM.