What Happens When The U.S. Dollar Declines? | Metals Mine

  • What Happens When The U.S. Dollar Declines?

    From openmarkets.cmegroup.com

    The U.S. dollar is the most important currency in the world and when it falls, everyone feels the ripples. Over 80 percent of all currency transactions involve the greenback and investors of all asset classes have learned that its ups and downs can have significant ramifications for their investments. But the dollar’s influence is even more far reaching than that – any businesses with customers outside of their own borders need to be mindful of its swings because the moves in the greenback can have a big impact on earnings and equity valuations. Dollar Connection to Gold and Oil In fact, it is hard to find a ... (full story)

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NotAtrader
Jul 3, 2019 6:06am
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You get a margin call...
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Nabz
Jul 3, 2019 1:24am
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Quoting EventsTrader
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Its the future.
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EventsTrader
Jul 3, 2019 1:15am
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However the correlation is not perfect because gold can rise contemporaneously with the U.S. dollar in times of risk aversion when markets are selling off and investors are nervous.
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EventsTrader
Jul 3, 2019 6:31am
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Quoting NotAtrader
You get a margin call...
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Micc23
Jul 3, 2019 2:41am
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This article is NOT written by "CME.com. Rather if you read into the article you find that it is one of many articles written by Kathy Lien, a author of elementary books for Forex traders.


"Kathy Lien is Managing Director and Founding Partner of BKForex. As an expert on G20 currencies, she is often quoted in the Wall Street Journal, Reuters, Bloomberg and other leading news publications. She also appears regularly on CNBC – US, Asia and Europe and on Sky Business. Kathy is the author of the best-selling book Day Trading and Swing Trading the Currency Market as well as The Little Book of Currency Trading and Millionaire Traders: How Everyday People Beat Wall Street at its Own Game. "
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Micc23
Jul 3, 2019 2:47am
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Also, despite the Gloomy Forex Factory headline, if you read just a little further past the Forex Factory summary page you find

"AT A GLANCE

Gold and oil often rise, earnings tend to surprise more when the dollar falls
In a booming economy, a declining dollar can be a positive contributor to growth"
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Eddie.
Jul 3, 2019 6:53am
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Regardless of the source, a reminder to be diligent regarding the far reaching impact of the dollar is appreciated. It is difficult to grasp how the volume of dollars effects the world economy.
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