The dollar has continued to press higher, making new relative highs, albeit barely. We are making a concerted effort to solidify the 104 handle, which is proving to be quite difficult. The dollar is also due for a bit of a correction, even if it is just a sideways correction to the 102's as we have seen last week. But from a broader perspective, the dollar trade is still strong and after solidifying 104, our next target is 104.53.
Any thoughts about China joining Russia's gold-ruble tie? Even if China is in a completely different situation, is a gold tie an interesting way to a solid Chines reserve currency? I can't imagine too many (trader, investor)s are entirely convinced that (US, Europe) finances will all of a sudden become (responsible, low-risk), or that they can be immune to eventual confiscation of assets (the same fear f many with respect to Russia, China. OPEC and several other commodity producers might be interested (especially with the ridiculous blames they are now subjected to), and India might want to straddle East and West by being passively interested?
quantguy
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@Bill_Howell, Both the Chinese and Russian central banks have been hoarding gold for years, presumably to back a stronger unified alternative to the dollar. The sanctions that the US has imposed on Russia have completely backfired for the West and have only strengthened Russia-China ties, and added value to the Ruble. Russia is now demanding countries pay for oil in Rubles, not the US Dollar, and despite lip service to the Ukraine, even European countries have been happy to oblige.