{"id":53553,"date":"2020-06-08T06:37:14","date_gmt":"2020-06-08T11:37:14","guid":{"rendered":"https:\/\/olduvai.ca\/?p=53553"},"modified":"2020-06-08T06:37:16","modified_gmt":"2020-06-08T11:37:16","slug":"as-economies-reopen-the-usd-faces-this-triple-threat","status":"publish","type":"post","link":"https:\/\/olduvai.ca\/?p=53553","title":{"rendered":"As Economies Reopen, the USD Faces this Triple Threat"},"content":{"rendered":"\n<h3 class=\"wp-block-heading\"><a href=\"https:\/\/www.birchgold.com\/news\/as-economies-reopen-usd-faces-triple-threat\/\">As Economies Reopen, the USD Faces this Triple Threat<\/a><\/h3>\n\n\n\n<figure class=\"wp-block-image\"><img decoding=\"async\" src=\"https:\/\/www.birchgold.com\/wp-content\/uploads\/dollar-attacked-6-5-20-1.png\" alt=\"dollar attacked\" class=\"wp-image-17173\"\/><\/figure>\n\n\n\n<p class=\"wp-block-paragraph\">The U.S. dollar\u2019s status as the global reserve currency has been&nbsp;<a href=\"https:\/\/www.birchgold.com\/news\/china-is-one-signature-away-from-killing-dollar\">under<\/a>&nbsp;<a href=\"https:\/\/www.birchgold.com\/news\/germany-aims-to-dethrone-us-dollar-as-central-payment-currency\">attack<\/a>&nbsp;for many years. But today, these attacks seem to be expanding and intensifying. Let\u2019s look at three recent developments.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><strong>Big Bank Bets Against the Dollar<\/strong><\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Now that most state economies have at least started to reopen, Goldman Sachs is betting against the dollar, according to a recent CNBC&nbsp;<a href=\"https:\/\/www.cnbc.com\/2020\/06\/01\/goldman-sachs-bets-against-the-dollar-as-economies-reopen.html\" target=\"_blank\" rel=\"noreferrer noopener\">article<\/a>:<\/p>\n\n\n\n<blockquote class=\"wp-block-quote is-layout-flow wp-block-quote-is-layout-flow\"><p>In a note over the weekend, Goldman strategists said that while they had maintained that it was too early to look for \u201coutright and sustained Dollar downside given the balance of cyclical risks,\u201d&nbsp;<strong>shorts on the dollar now looked attractive in certain currency crosses.<\/strong><\/p><\/blockquote>\n\n\n\n<p class=\"wp-block-paragraph\">The article continued by explaining precisely what \u201cshort selling\u201d the dollar means:<\/p>\n\n\n\n<blockquote class=\"wp-block-quote is-layout-flow wp-block-quote-is-layout-flow\"><p>Short selling a currency involves borrowing that currency, selling it at the current market price and then waiting for the price to fall in order to buy the currency back at a lower price and return the loan.<\/p><\/blockquote>\n\n\n\n<p class=\"wp-block-paragraph\">Specifically, Goldman is betting on the Norwegian krone to outperform the dollar, and thinks the krone is well positioned to do just that.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Recent performance of the dollar (<a href=\"https:\/\/www.marketwatch.com\/investing\/index\/dxy\/charts\" target=\"_blank\" rel=\"noreferrer noopener\">DXY<\/a>) could be revealing that Goldman Sachs is off to a good start with their bet:<\/p>\n\n\n\n<div class=\"wp-block-image\"><figure class=\"aligncenter\"><img decoding=\"async\" src=\"https:\/\/www.birchgold.com\/wp-content\/uploads\/U.S.-Dollar-Index-and-50-Day-Moving-Average.png\" alt=\"U.S. Dollar Index and 50-Day Moving Average\" class=\"wp-image-17170\"\/><\/figure><\/div>\n\n\n\n<p class=\"wp-block-paragraph\">As you can see at the far right of the chart, the dollar\u2019s value is dropping close to levels not seen since early 2018. It\u2019s also severely under the moving average.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Meanwhile, the&nbsp;<a href=\"https:\/\/www.marketwatch.com\/investing\/currency\/usdnok\/charts\" target=\"_blank\" rel=\"noreferrer noopener\">krone<\/a>&nbsp;is still above the moving average, and doesn\u2019t appear nearly as \u201cflat\u201d as the dollar.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">But the krone is not the only challenge to the dollar\u2019s hegemony; changes to China\u2019s currency represents another one.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><strong>4-Letter Potential \u201cNightmare\u201d for the U.S. Dollar<\/strong><\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Right now, the main currency in China is the yuan.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">\u2026click on the above link to read the rest of the article\u2026<\/p>\n","protected":false},"excerpt":{"rendered":"<p>As Economies Reopen, the USD Faces this Triple Threat The U.S. dollar\u2019s status as the global reserve currency has been&nbsp;under&nbsp;attack&nbsp;for many years. But today, these attacks seem to be expanding and intensifying. Let\u2019s look at three recent developments. Big Bank Bets Against the Dollar Now that most state economies have at least started to reopen, [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[2],"tags":[18769,130,839,5482],"class_list":["post-53553","post","type-post","status-publish","format-standard","hentry","category-economics","tag-birch-gold-group","tag-china","tag-us-dollar","tag-world-reserve-currency"],"_links":{"self":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/53553","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=53553"}],"version-history":[{"count":1,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/53553\/revisions"}],"predecessor-version":[{"id":53554,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/53553\/revisions\/53554"}],"wp:attachment":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=53553"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=53553"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=53553"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}