Currencies Quiet After Trump’s Good Weekend
May 22, 2017
Dennis Gartman is editor and publisher of The Gartman Letter, and strategic advisor of the AdvisorShares Gartman Currency Hedged Gold ETFs (GEUR & GYEN). He regularly contributes to AlphaBaskets and lends his institutional insight to educate advisors and investors about commodities and the forex markets, including about trading gold in different currency terms.
Interestingly, there is really very little news in the forex market over the weekend to push the dollar higher or lower in any material manner. Certainly everyone’s collective attention is focused upon President Trump’s travels into the Middle East over the weekend and his travels today to Israel have our attention and should have everyone’s. At this point the President’s meetings have gone exceedingly well. He has actually acted “Presidential” in his dealings with the Saudis and the other members of the Gulf Cooperation Council whom he addressed very successfully yesterday. Today he is meeting with the leadership of Israel and those meetings too are likely to go well.
Importantly, the President has refrained… admirably… from “tweeting” and has also refrained from adding gasoline to the fires concerning Gen. Flynn, Mr. Comey, the Russians et al by focusing upon the foreign policy issues at hand. The President is actually acting like an adult in the room and that is a very, very good thing.
The same battle line in spot gold that developed back in late February-early March, and again in late March-early April between $1240-$1260 is developing once again. We stand by the thesis that the lows made in late December of last year at or near to $1150/oz. are important, multi-year lows, and that the importance of those lows were tested and made certain when the market broke in late February and yet new interim lows were made at or near to $1190. Higher lows were made again in mid-March at or near to $1200 and now it appears that newer and even higher lows were made earlier this month at or near to $1215/oz.
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