Bank Of America Warns "The US Dollar Is In Trouble"

Tyler Durden's picture

Global financial and commodity markets are warning that the US Dollar is in for a bout of trouble, warns BofAML's Macneil Curry. Across asset classes, Curry points out that Gold was the first to make its low against the US Dollar, doing so back on Dec-15. The second market to turn against the US Dollar was US Treasuries, with Ten year note futures turning bullish back on Dec-26. Currently, the FX market - most specifically GBP - is breaking out and pressuring the US Dollar. Finally, the Japanese stock market continues to suffer, putting downward pressure on USDJPY and thus US Dollar weakness.

Via BofAML's Macneil Curry,

Gold breaks pivotal resistance

Across assets gold has been the lead market against the US $; having forged its base back in mid December. Now, it has broken above its 150d average (1295) for the 1st time since Jan’13. This average has been an excellent barometer of the medium term trend and points to further gains. We target the confluence of resistance between 1355/1374 and potentially beyond.

US Ten Year Notes futures set to make new highs

The TYH4 corrective pullback from its Feb-03, 126-16 high, coupled with the hold of its 21d moving average (now 125-10) says the year-to-date uptrend remains intact. When combined with an increasingly bullish backdrop for risk, this is bearish the $.

£/$ is on the edge of a major breakout

A closing break of the1.6748, Apr’11 high, would mark the end of a 4yr contracting range and target further upside towards long term pivots at 1.7145/1.7167. This could also prove to be the catalyst for €/$ to break key resistance at 1.3737 and the US $ Index to break key support at 79.68; all of which would be very bad for the $.

A bearish Nikkei is trouble for $/¥

The Nikkei remains in a medium term bear trend, with the break of the 100d (now 14,988) pointing to further near term weakness. We continue to target the summer 2013 lows at 13,388/14,415 before the long term bull trend can resume its footing. This Nikkei weakness is likely to maintain downward pressure on $/¥ given their strong positive correlation. For the currency pair, watch the Feb-07 post NFP low at 101.54. Through here opens the 200d at 100.21 and below.

Comment viewing options

Select your preferred way to display the comments and click "Save settings" to activate your changes.
Groundhog Day's picture

This means it's time to go long the dollar and short equities. 

macholatte's picture

 

 

Consensus……

BofA – dollar doomed

Goldman – buy gold

China -  print, print, print

USA – more free shit, Michelle buys a new dress

JPM -  we never manipulated a market that didn’t need it

Japan – print, stop, print, stop, print, Fuck You China

ME – war, war again and more war

EU –  Goldman serf

Russkie – we got more medals Fuck Off Obama

UK – The Royals

 

--- >               VERY VERY Bullish for news letter writers

 

Abi Normal's picture

I know many of you hate me, but that is AOK, that is your right.  There is a way to effect change:

http://patriotsforamerica.ning.com/

http://www.youtube.com/watch?v=EMim-LMCPz4

I feel this is going to be a dicey situation, but it is an action that needs to happen.  So instead of banging keyborads, and your head against the wall, look into becoming a part of the restoration!

5/16/2014 in DC...

another link:

http://www.youtube.com/watch?v=wUxLa7yJiIs

weburke's picture

proving once again that leaders are non-existent. 

 

Abi Normal's picture

It will take time, but leaders will emerge, the Col retired is leading right now...if that is what you mean?

TruthInSunshine's picture

Fade each and every recommendation that comes out of BankOfMerrillAmerica's "Research" Division; their "research" is at least as bad as Tom Stolper's research, and that's saying something.

Truthseeker2's picture

"Of course, the perfect storm within this Perfect Storm can be easily identified as the inevitable devaluation, and eventual collapse, of the once Almighty Dollar.  Inasmuch as it has functioned as the primary reserve currency for the world, it is quite easy to understand the many negative ramifications of its rapid demise.  As nation after nation has let it go as a means of exchange, the ultimate effects on the US currency can best be described as “that giant sucking sound”.  However, the real problem with this giant sucking sound is not just the effects on the US DOLLAR, but that it will be deafening to hear throughout the economies of the world."

 

"The FOUR HORSEMEN Herald the Death Knell of Predatory Capitalism"

*
http://cosmicconvergence.org/?p=1987 

logicalman's picture

The problem I have here is the 'patriot' thing.

Is an American worth more than a Norwegian or an Afghani? NO.

Countries are just fictions to divide, anyway.

The problems we face are global, not national.

I'm no advocate of 'globalising' when it comes to trade, by the way. Local is better and more efficient.

Real money and the end to Central Banks is what EVERYONE needs.

SilverFish's picture

I couldn't agree with you more.

 

If you are for freedom from the chains of government, regardless of which country you are from, I consider you my brother/sister.

 

As for the rest, well...... I wouldn't piss on your face if your teeth were on fire.

Abi Normal's picture

Well, I wouldn't piss on your face, no matter what!

This is not about globalism, it is about Freedom from tyranny in America, I could give a rip about the rest of the world, if they wanna be slaves so be it...not me!

The reality is there are countries today, so you want 'open borders', by your logic, everyone would be a global citizen, no nationality or identity.  If this is what you want then everyone would be a faceless body...I don't think that is the way to go.  God made nationalities, different skin colors, different creeds, etc.  Did he want us to get along, sure, but there is one catch all of that, Satan, and that my friends is the catch.  Do you really think we would all get along any better, if there were no borders?  Heck no! 

koncaswatch's picture

.."give a rip about the rest of the world, ..." None of the rest of the world wants to be slaves to anyone either. Remember, by design, the USSA exports its shit to the rest of the world first. One day the inflation that is exported will come home to roost. Then you all can have a conversation about borders.

OC Sure's picture

"Real money and the end to Central Banks is what EVERYONE needs.

Real money and the end to Central Banks is what EVERYONE needs.

Real money and the end to Central Banks is what EVERYONE needs."

 

This: ^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^

 

greenbear's picture

If sovereign nation states are dissolved then EVERYONE on earth will be subject to the absolute slavery that a One World Government will bring.  The end of nations would not be an anarchist's utopia, it would be a return to Babylon. 

 

12How art thou fallen from heaven, O Lucifer, son of the morning! how art thou cut down to the ground, which didst weaken the nations!

13For thou hast said in thine heart, I will ascend into heaven, I will exalt my throne above the stars of God: I will sit also upon the mount of the congregation, in the sides of the north:

14I will ascend above the heights of the clouds; I will be like the most High.

15Yet thou shalt be brought down to hell, to the sides of the pit.

16They that see thee shall narrowly look upon thee, and consider thee, saying, Is this the man that made the earth to tremble, that did shake kingdoms;

17That made the world as a wilderness, and destroyed the cities thereof; that opened not the house of his prisoners?

Isaiah Chapter 14

King James Bible

whirlybird rules's picture

Thumbs up!  Charts have cost me A LOT OF MONEY in this orchestrated world.

The.Harmless.Who's picture

not good .... some of my salary is in usd... as are many ZHers.... 

 

surely a strong usd is good (and strong gold is good too!)

 

also.... anyone saw bitcoin - it is CRASHING!!!!  

 

Timber!!!!!!!!!!!!  I mean: Tulips!!!!!!!!!!!!!!!!!!!

 

 

fonestar's picture

Bitcoin is not "crashing", perhaps on Gox but nobody gives a shit about Gox.  fonestar does expect Bitcoin to roll into the $400s - $500s though. 

But yes, very much like a fake libertarian to bemoan the statist USD while cheering a falling decentralized currency like Bitcoin.

AllThatGlitters's picture

Fonestar, you were making the same bullshit disengenuous comments at BTC=$1200, $1000, etc.

Stop with the "fake libertarian" bullshit.  Everybody sees through it.

Recognizing BTC as nothing more than a tulip bubble does not make one a fake libertarian.

Your comments are so full of shit that I believe most recognize you as the fake. A clown of a BTC promoter.

And as for the constant reference to yourself in the 3rd Person, it doesn't make you look special like you think it does. It make you look silly, like Bob Dole running for President. People are laughing at you when you do it. Yes, I know you "don't care." But one has to wonder why you keep trying so hard if you truly do not.

akak's picture

I have suspected for quite some time now that Fonestar is actually anti-bitcoin, but masquerades as an over-the-top pro-bitcoin troll to effect his underlying anti-bitcoin message.

El Vaquero's picture

I think he lives near me.  I went on a walk for pleasure today, and passed by a dumpster that had graffiti on it.  It had a circle with the Bitcoin symbol in it, and positioned above and below the circle were the words "BITCOIN WARLORD." 

akak's picture

You should have looked inside the dumpster, though, to see if there was a bedraggled homeless guy sleeping in it.

If there was, you can be sure that it was Foneystar.

El Vaquero's picture

Next time I go walking that way, I'll have to get a picture or video of it and post it. 

fonestar's picture

Yeah, it must be another conspiracy maan!!  You tools!  Is it that hard to imagine that Bitcoin has a fanatical following accross the globe.  Just keep waiting for the world to become as dumb as some of you, the Bitcoiners will become rich in the meantime.

akak's picture

Whatever, asswipe.

Here, I have a very special SmegmaCoin just for you.

fonestar's picture

Go hang out on Reddit or Bitcoin Talks. 

fonestar is considered a moderate there.

BoNeSxxx's picture

I'd rather receive a warm milk enema from the first Wookie.

fonestar's picture

If fonestar was as wrong about something for as long as you boneheads have been wrong about Bitcoin he might be forced to re-evaluate his position.  Nope, not you guys!!

Double.Eagle.Gold's picture

<--- Wookie has Chocolate milk

<--- Wookie has White milk

tradebot's picture

"I'd rather receive a warm milk enema from the first Wookie."

 

Too cool...change your luck

Iam_Silverman's picture

"Is it that hard to imagine that Bitcoin has a fanatical following accross the globe."

Well, apparently so does homosexuality, but I changin' just to be popular.....

hobopants's picture

Bitcoin is waaaay better at polluting threads than Gold that's for sure.

Greenskeeper_Carl's picture

He kinda reminds me of MDB. That guy is obviously satire, and quite good at it. Makes me wonder if fonestar isn't pulling the same shit.

Chain Gun Smoke's picture

I think Million Dollar Bonus was a gold pumper in the same way.

fonestar's picture

If you support the dollar you are a fake libertarian.  It's not just your failure to get behind Bitcoin that makes you a fake libertarian, it's your failure to promote silver usage and your continued passive acceptance of dollars in trade.  The Bitcoiners are making history and our rewards in terms of profits are much deserved as it is the Bitcoiners that are stirring up the debate and making the noise (as the metals-only stackers hide out and be quiet).

AllThatGlitters's picture

"the Bitcoiners are making history and our rewards in terms of profits are much deserved" 

You sure have a funny way of calculating profits.

$300 - $1200 = ($900) <- Not a Profit

And you call everybody else stupid.

90% of the suckers you've tried to talk into Bitcoin would have bought at over $1,000.

They would have bought from your God Satoshi and a select few at the top of the pyramid.

Luckily, most on ZH where you spend your time are intelligent enough to see right through you.

You've probably helped to contribute to Bitcoin's CRASH, without even realizing it, LOL.

Your ability to make statements like that above, your total lack of shame and your continued reference to yourself in the 3rd Person, all has the hallmark of a deluded psychopath.

Some think your game is so blatantly absurd that you must be a parody like MillionDollarBonus. I personally subscribe to the belief that you are genuine in your beliefs, but clinically psychopathic and delusional.

fonestar's picture

So how did you cherry pick those numbers?  If you will recall, fonestar has been in Bitcoin since $16 and has been loudmouthing Satoshi's triumph since under $50 on Zerohedge.   Profits, massive profits and yet... nothing compared to what the Bitcoin devotees are about to see.

akak's picture

BEETCOIN!!!

It's got what NSA plants crave!

Murf_DaSurf's picture

 

 

 

Fonestar!

 

Who the hell let you out of the Basement, slug?

logicalman's picture

I think this may explain things...

And as for the constant reference to yourself in the 3rd Person, it doesn't make you look special like you think it does.

It does make him 'special' as in 'Ed'

Mr.Bigfoot's picture

I've read ZH for years. The collapse has always just been around the corner. Hyperinflation or deflation has always been imminent. The Zombie apocalypse any day now for the last 4 years. No need to bash fonestar. There ain't going to be change to the status quo except through something no one expected. Bitcoin is the only thing that actually represents a paradigm changer around here. Let the down votes begin...

SilverDOG's picture

Mr BigFOOT !

My assumption is... after all who question the media injected reality become numbed beyond cognizant synapse connections... BOOM all over. Similar to USSR's financial implosion. I dare say we are closer today than yesterday, and who knows tomorrow. 

Remember; "Whoop that trick!, whoop that trick!"

We all are being whooped and tricked -.01%

SgtShaftoe's picture

How long has gold been in a cyclical bear market? 2 years.  Because BTC ran up a spectacular rise, and it's now corrected, it's a tulip bubble?!?!  WTF. 

 

Some people get so emotional about BTC and absolutely hate it.  They'd still hate it if F.A. Hayek himself wrote an article bullish on BTC. 

Groundhog Day's picture

1200 to 450 in a few weeks and i'm supposed to convert my life savings to it

wintermute's picture

Yes. FFS, can't you see a screaming buy? Or are you one of those BTFATH traders?

fonestar's picture

1200 to 450 in a few weeks and i'm supposed to convert my life savings to it

 

Yes, because in the next few years Bitcoin is going to five, six and seven figures.  You people suffer from the same temporal boneheadedness as the stawks crowd.  Ie, things must be okay because oil is only $100 bbl.

akak's picture

Your refusal to trade rare tulip bulbs proves that you are a fake libertarian.

QED

BoNeSxxx's picture

But his ability to turn ZH chart porn into a Bitcoin discussion proves his prowess as a real troll...