On The Verge Of The FOMC Presser, Dollar Hits 3 Year Low

Tyler Durden's picture

It appears the market is in a festive mood today, just 8 hours ahead of the first largely irrelevant FOMC press conference (yes, Bernanke has fielded irrelevant Q&A before, and yes, whenever he met a question he did not like, he disagreed with it and moved on). As a result the long-suffering US Dollar, which continues to be down YTD as much as the market is up, confirming that in real term there has been absolutely no gains in the stock asset class, has just hit a 3 year low and just a little more to go until the all time low is breached. And this is in addition to the just announced S&P outlook cut on Japan, which has seen some incremental shorting of the Yen which unfortunately now is a secondary carry funding currency, and you can see that while the dollar should be getting at least a modest push higher the EURUSD is now toying with 1.47. The biggest winner in FX land continues to be the USD-backed CHF, which is outperforming every other pair. And elsewhere, after doing its all too usual OpEx shenanigans, gold is also back in fine form, over $1,506 and going higher now that the shakeout of the latest batch of weak holders has taken place. All in all, a perfect day for nobody to ask whether it is US policy to destroy its own currency.


Dollar performance relative to varioous FX pairs. The lower, the weaker. CHF winner by a mile:

And Gold. No more OpEx monkey business. At least for a few weeks.


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slaughterer's picture

dollar death party, bitchez

Twindrives's picture

Bernank set to self immolate any time now. 

Popo's picture

Bernanke is determined to exterminate retirees.  

What's 1% of your $500k nest egg per year, grandma?    You can live on $5k annually, can't you grandma?    Just turn off the heat and electricity.  You'll be fine.  And if you need medicine, just stop taking it.  

Thanks, Ben.  At least you saved the banks ... before you threw the elderly under the bus.






cowdiddly's picture

Ben, the Knife has been sterilized and sharpened. Please Harikari, If not for yourself, for your countryman. Everyone makes mistakes and being that you were brainwashed by Ivy League schools where the textbooks have been scrubbed of all competing economic theories other than your beloved Keynesian bullshit by your paid off PHD department chairs, Please, at least pay tribute to Mauthus and off yourself.

 Oh yes,and by the way, since you have made my highest denomination 100 dollar bills the equivelent of 2 dollars since my life began and my Grandfather had 1000 and 10,000 dollar bills he could legally tender before you guys decided that was way to much money for us smucks to have in our possession, you have made a nation that can now only carry nickels. Before you go and before the printers overload could you please add a few zeros to the money so I will quit tearing out my wallet from carrying such a wad around to have enough to actually fill my tank and buy a weeks groceries. Thanks, Feel free to put your ugly ass mug on it, and be sure and smile for the camera just so I will always remember you. I Know you have at least considered this, as I have noticed the nice fruity colors you have been adding to the currency lately to kinda get us warmed up to the idea of money that looks and acts like the Korean Won.

  But hey those Buffalos you make are still cool, every one tells me I better sell em, but what do I know Im just a stupid Indian. I just like to keep them around to remember when you guys thought the best way to exterminate us was to kill all our food so we would starve. Now its my turn to watch you. 

Silver Bug's picture

Any one who sold their Gold or Silver in the last days shake out, better get back in quick. This bus isn't going to wait around. Pretty sad that the S&P places Japan credit outlook to negative and the Dollar hits a fresh low. If the Dollar can't rally of that, well, what can it rally off?



Moe Howard's picture

I heard APMEX may have some silver. At least, they were trolling for the silver they just sold you.

Id fight Gandhi's picture

Are the fucktards expecting some wording that will mean more qe today? Is that why markets are loving this?

slaughterer's picture

Seriously, we thought the support at 74.20 would hold till the FOMC announcement.  This should really indicate how the large FX trading desks view the future of US policy.  As ZH already pointed out, the move to the CHF is not a move to a safe haven, given their half trillion exposure to USD.  No place to hide, except gold really.

TheGreatPonzi's picture

But but, deflationists like Ackerman or Prechter promised me Federal Reserve notes were the only thing to buy, I don't understand, how could people that smart be wrong? 

fredquimby's picture

Ackerman needs to read this: it is a personally aimed answer to his deflationist theories...


Hephasteus's picture

The dollar. It's where smart money goes to catch encephalitis.

zhandax's picture

Looks more like late stage syphilis to me....ya know, dementia, apathy, seizure et al....

Jack Sheet's picture

You could well add Mish Shedlock to that list

Snidley Whipsnae's picture

Yes add Mish...when he isn't bashing unions

'We believe in a strong dollar policy'... a quote from every president that I can recall... and that is a bunch of them.

Jack Sheet's picture

...right, it's a strong dollar for those who get the freshly printed ones first.


LowProfile's picture

He doesn't bash unions.

He points out government unions are extortionists.

How's that fedgov pension looking now for you, douch?

fredquimby's picture


"Any one who sold their Gold or Silver in the last days shake out, better get back in quick."

Is it ok if I buy some more GnS, even if I didn't sell any of mine this last week??

Kina's picture

AUD 1.083 sheesh


time for another gold leg up

Yen Cross's picture

Black swan. Real money is already cashing out. Run long stops and smalls. 1.10 should cap it. Don't get greedy!

Yen Cross's picture

I have an unweighted (non- ICE)For newbees. Low of 73.68 DXY. 4-26-11 2@ 18:30 W.C.T +7

slaughterer's picture

Given this move, DXY should hit the 60s this summer. 

slewie the pi-rat's picture

yes, things could be better.  but the american people should not worry.  your trust in your financial and political leadership is truly well placed, at this point in time.  we are in charge. 

we shall not fail you! 

trust us!


Yen Cross's picture

Show me a chart Rat Boy!? Talk is cheap!

slewie the pi-rat's picture

tyler is in charge of charts, Y/C.

he seems very bullish on them. 

i'm a bit wary of them, right now, and am hedging.

with farts.

Sudden Debt's picture




Yen Cross's picture

You Europeans make me laugh! Portugal,Spain,Ireland,Italy, Greece, and all of the Club Med team. Not to mention the OLD West Russian PERIPHERIES!

TheGreatPonzi's picture

Why do you assume the US dollar, and the US economy on a larger scale, have anything to do with America and its values? 

Yen Cross's picture

I'm sure I will regret this! What is your question or point? Is it the revaluation of Asian currencies? Is it Brazil? Is it just laziness? Is it just being a mental midget? Do you even have a question?

Broomer's picture

Every nation has the currency it deserves.

Yen Cross's picture

I sure hope it stays that way.

Twindrives's picture

The Federal Reserve Note......... is The Rothschild Note.   Die bitch, die.  And take your faithful stooge Bernanke to hell with you.

Get ready to go to arms America.


johny2's picture

How is CHF backed by USD? You did not confuse USD for Gold, did you?

Yen Cross's picture

It isn't. Smart Question! It's a PROXY!

johny2's picture

CHF are backed partially with Gold as far as I know...but I am always learning something new.

Urban Redneck's picture

CHF is NOT backed by gold.  SNB simply has huge gold reserves relative to the size of the currency float.

johny2's picture

Basically the CHF is just another fiat currency. Maybe not as bad as Dollar or Euro, but no substitute for the Real assets.

And it can be put the way Tyler did, CHF is backed by all assets Swiss hold, including the IOU'S. 

Urban Redneck's picture

plus double the USD amount in EUR + 1000 tons Au, the issue is the comparative lack of "stuff" on the liability side of the balance sheet

Snidley Whipsnae's picture

Lest we not forget how the Swiss came to have lots of those dollars... Defending their currency with dollar purchases to maintain their export businesses.

iows... It's not like the Swiss thought the dollar was a good place to be...

bingaling's picture

Silver and gold aren't going up neither is the market it is a parabolic fall of the dollar that makes it appear that way . 

Broomer's picture

You can actually say that gold is static and silver is going up, because the ratio is falling.

Snidley Whipsnae's picture

Hat tip to Jesse for posting this one... Definitely worth a read...

"The Bankers' Silver Scam Is Unwinding" "The massive losses that short sellers have been taken has naturally led to some new urban myths. Some now claim that "evil" long side billionaires are out to "ruin" the market. Yet, even the Financial Times article points out the ridiculously paranoid nature of this theory. The author notes that silver prices were rising even as speculative positions at COMEX were reduced by 8.4%. This illustrates that the COMEX is now just a sideshow. A lot of people are simply buying physical silver.

The silver buyers do include some billionaires, undoubtedly, but most of them are simply folks who watched Jeffrey Christian's testimony at the well publicized CFTC position limits hearing back on March 25, 2010, and came away with the distinct impression that a small group of London banks have been creating alchemic silver. The banks were ostensibly "selling" and then "storing" so-called "unallocated silver bars" for silver investors. In reality, they seem to have been maintaining a fractional banking system in which only one physical ounce is really purchased for every 100 ounces they supposedly sell." Remainder of post here:http://jessescrossroadscafe.blogspot.com/2011/04/bankers-silver-scam-is-...



Hephasteus's picture

There's no billionaires buying silver. It's just little people with a simple message to ctfc. You're not so tough without your car are you bitch?

Snidley Whipsnae's picture

"there are no billionaires buying silver"

lol... A bit Amerocentric, are we?

There are billionaires the world over that are buying silver...along with the millions of non billionaires. It all adds up but the big boys are the heavy lifters in paper markets...and the Chinese are doing more than their fair share.

Broomer's picture

Little people don't buy COMEX contracts.

Hephasteus's picture

And people with meager 50 to 250 million net worths and 5 to 10 million bucks can wreck that place. I'm not being amerocentric. I'm telling you none of the "super stars" are doing this.

And just where do you think thousands of people buying a few coins here and there get it from? Does it wash down from the river to their coin shop? Does it grow on a tree in the back of the coin shop? Little people can get allllll over comex.