Coincident with that will the next leg up in gold and commodites from a dollar denominated perspective...
BTW...did you happen to notice the yield curve inverted in the bond market today for a moment for the first time in 5 years?...what happened 5 years ago to the market...
If anything, the yield curve indicates a strengthening dollar, especially when one considers that the EU funds rate is much lower. Bernanke needs to end the current tightening trend. There's no need to cause a recession, though Greenspan seemed to enjoy them immensely.
No doubt the dollar has another leg up to go this first quarter...
I expect the dollar index to punch through 92.50 on its way to about 96.00...then IMHO opinion and the opinion of some others the dollar will resume its down trend.
I am short EUR and GBP and long USD (carry CHF)...
It will resume its down trend...IMHO