Giving the long dollar trade another try

[tippy]

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GOGOGO DOLLAR!

It's eating every currency alive toady (except the yen which is up vs. the dollar)

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Yeah, now the question becomes: Pullback or Reversal?

I'm guessing pullback. Commodities are coming down fast, especially gold. This is a good signal for less inflation. If we get less inflation, that allows the FED plenty of room to keep cutting. If the FED cuts, the dollar could fall right back down. CPI should be really interesting this week.

Of course it could also just be a minor pullback in commodities since everyone is speculating on them, especially the carry trade guys. If commodities start ripping up again, the dollar could also fall back down, even though this boxes the FED in somewhat.

Truly a tricky situation. The USD/JPY pair is out of whack with equities today, which is really confusing. I'm standing back and watching for a day or two.