Over the weekend, the US dollar was pummeledas it fell against almost every major currency and every minor currency except one. Hmm, which one would that be? Before we get to that, let's run through the top seven reasons the greenback got whacked.
- IMF report saying $ overvalued.
- G20 no mention of US dollar in statement
- G20 no stimulus exit.
- China warns US to reduce deficit.
- US House passes HC bill that expands deficit $1.1 trillion.
- India to exit stimulus.
- Better than expected German IP at +2.7% ve 1.0%.
All of these came after the US reported weaker than expected Non Farm Payrolls and reported that the Unemployment Rate surged to 10.2%. The U6 rate which includes workers that are discouraged and stopped looking is 17.5%. All of this supports the structures that are in place to support US growth, but undermine the currency. These structures are the policies of the US Federal Reserve and the US government.