Trend For Soaring US Dollar Likely To Continue
Dennis Gartman has been directly involved in the capital markets since 1974 and has been publishing his daily commentary, The Gartman Letter, since 1987. Mr. Gartman is a strategic partner with the AdvisorShares Gartman Currency Hedged Gold ETFs (GEUR & GYEN) and lends his institutional insight to educate advisors and investors about trading gold in different currency terms.
The US Dollar soared following Friday’s surprisingly strong Employment Situation Report of course but the dollar had been strong going into the report and the trend is simply asserting itself all that much more certainly. As we have said in speeches recently we are of the mind that the dollar is simply in the 3rd of 4th “inning” of a 9 inning game because the economy here is clearly stronger than are the economies of Europe and/or of Asia and our markets are stronger and likely to remain so. We could become more esoteric… more sophisticated… more complex than that, but that we think is wholly un-necessary.
Gold/EUR has fallen from its peak in the 3rd week of January of €1170/oz. to its present €1093 and we must remember that it broke out to the upside when it finally drove upward through €1050/oz. We shall view this recent weakness as corrective in nature. We can say effectively the same thing regarding Gold/Yen, for it peaked one day earlier than Gold/EUR, having traded to ¥155,000/oz. then while it trades ¥148,000 this morning.