For general discussion and debate. Possible talking point: has the commodities bubble finally burst, and the dollar bear market finally ended?
The dollar headed for a fifth weekly gain against the euro, its longest winning streak in more than two years, as crude oil prices declined and economies from Germany to Japan contracted. The U.S. currency rose to the strongest level in almost six months against the euro and a seven-month high versus the yen. The pound dropped for an 11th day against the dollar, the longest run of declines in at least 37 years, on speculation a recession will force the Bank of England to cut interest rates.
Does this represent a serious trend reversal for commodities and the dollar, or will it end up just being a much-needed correction in longer-term bull and bear markets respectively? Despite the obviously beneficial impact on inflation caused by lower commodities prices, will a strengthening dollar hurt our economy as American goods become more expensive abroad?
