Here is Sean Brodrick's view of the USD. Today's strong rally in gold and equities could just be part of a set-up for next week. After all, it would be quite out of character for the PPT to allow the USD to falter during a week of massive treasury auctions. Either way, next week should be interesting.

Regards - VHF

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The Dollar's Long Kiss Goodnight

Sean Brodrick

August 21, 2009

The dollar says “good night” more times than a reluctant 3-year-old going to bed, so we’ll see how this works out.

Here is a chart of recent dollar action …

Now, let’s look at a longer-term chart …

And how is today’s dollar decline affecting gold. Let’s see …