The US dollar's strength as the equity and commodity markets collapsed was due to deleveraging and an effect of the Fed's temporary sequestration of dollars, taking dollars out of supply. That is over. Oil seems to be putting in a bottom on strong volume, no one is left to buy any more negative real-yield securities the Treasury is issuing, and gold has started looking very bullish.
Naufal Sanaullah
Naufal Sanaullah is a student at the University of Michigan and a derivatives trader. He is in the early stages of development of Dorm Room Derivatives, a stock-selection blog and newsletter service with daily updates and a customized stock-report service.
