Anyone know why the USD jumped from 74.2 to 74.46 last 30 minutes?

I was surprised to see the USDX jump from 74.2 to 74.465 in about 30 minutes. Anyone know anything?

Jim

 

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Could be big insider money entering a long position in the dollar. Maybe they were tipped off about the contents of Bernake's press conference on Wednesday. Maybe he's going to tell everyone that QE will not be continued.

 

It can only mean one thing...Bernake is about to raise interest rates!! (it's about time...imo).

 

Jim:

The dollar is at 74.23 currently, I think the rise is due to Bernake's scheduled talk on Wednesday, 27th April. My guess is that this may bring some optimisim to a rather bleak circumstance. I personally think interest rates will remain low due to enormus potential interest payments Uncle Sam will have to pay out...I really think he may talk of QE-3 and if he does, this will again be bullish for PM's. The Debt ceiling is going to be raised soon and then we have to finance the Gov operations again for this physcial year...not a pretty picture but I think folks want to hear some good news amongst all the bad news we have had lately.

By raising interste rates the Federal Deficit will rise exponentially and have worse mid to long term outlook. JMO..

RickieB

 

No way yak, no way!

PS but you're right, it is about time

 

The Dems are unethical...but they're far from stupid. They'll raise interest rates now to give themselves some fire power heading into the election. No choice...they gotta do it.

Guarenteed! You'll hear the name "George Bush" more in the next few weeks than you ever did when he was President.

...and it ain't a rant if it's true!

 

I read it the same way

Bluesboy65

 

I heard the same thing. Didn't Uncle Ben have his first press conference this weekend?
I did hear on the news over the weekend that there are signals that Interest rates will be going up.

 

I'm reading this is unlikely until Q1 2012. Course, it's all going to end Dec 2012 anyway...

Bluesboy65

 

I think its more that he'll say that there won't be a QE3 due to signs of improvement. Rate hike next year if you call 1/4% a hike, IMO.

 

Like many others I rather agreed with the talking heads today that said his speech would not have anything new, and it was already figured into the market. But the USDX is still above 74.4. Gold is 1496 and silver 45.3. I am beginning to have a bad feeling about tomorrow in several areas.

Jim

 

I will be shocked if he does anything other than leave the door open for QE3. The only other option the Fed has to prop up Treasury auctions is to monitize other debt on their books and begin swapping into Treasuries (back door QE) but that has other implications for domestic markets like real estate. We'll soon see.

Bluesboy65

 

I've also read that they don't plan on raising interest rates until 2012. I think announcing an end to QE is likely considering the current market behavior. It seems like silver is losing it's speculative boost while the dollar rises on anticipation of this, but even if they have the intent to go that route that doesn't mean they will be able to do so. I think when the time comes in June it will be a good stress test that will give us an indication as to whether actions leading up to that point worked or not. Considering the mountain of debt we've got I am not optimistic that QE can end, but certainly hope so. I figure most likely June will be my next buying opportunity.

 

Exactly!

 

Silver and Gold are already taking a hit in the Hong Kong Market. Gold below $1500 and Silver below $45. Might be a bit of a pullback going on.

 

Alright I'm hoping some of you guys know the silver market well, and I trust that you do - I know minor corrections/pullbacks occur and I've seen plenty of them since I started collecting last September, but the $2.00+ drop that's occurred in the past few hours alone has me worried. I would never consider selling everything right now, but I was thinking earlier about unloading a couple rolls of U.S. quarters, dimes, and a roll of Mexican 1950-1953 25 Centavos on eBay. Do you guys think the price will rebound pretty quickly, or did it reach its peak for a while? Of course, I know that any advice you give me could all turn out to change tomorrow, but I guess I just need some help deciding if I should list these few items now, or wait a couple days with the thought that the price might jump back and break $50.

Thanks for anyone's input

 

Trichet comments. That's all. Short lived.

 

Wow under 45. Interesting to see where the us market opens and closes tomorrow.

 

Considering that silver almost reached $50 last night, since then it has fallen almost $5 or 10%. If we had any real knowledge what silver or gold or any area might do, you would read it, but I certainly don't. If you look at the chart for silver after close of market, you will see that at each whole dollar amount, it tries to rally, but then deep sales occur and it falls to the next dollar level. Now it is just a little over 45, so interesting to see if it can reverse, or go down another notch. This has been a very interesting and somewhat confusing 24 hrs. Be interesting what the bullion dealers are offering tomorrow AM.

Jim

 

It should be noted that while silver dropped close to 5% last night, gold continued it's endless rise (~1/2%). Proof enough there is no relationship between these metals and what really influences them. It should also be an indication to silver buyers that silver pricing is not based on real physical silver demand, but rather the massive naked short game being played out in the futures market. It's high stakes gambling, and you small timers have no control over the outcome. If the banksters win this game, you people buying all this physical will be crying for a while.