I Think Today Is The Day The Dollar Breaks Down
I could be wrong - hell, most of the time, I'm way wrong. But I do think that today is the day the dollar breaks down.
Consider the evidence:
The Bank of Japan managed to keep the yen down following last Friday's Sendai quake. It was trading in an eerily placid 81-to-82 band on Monday, Tuesday and Wednesday - but then Thursday (Japan time), someone at the BoJ must've prematurely decided that it was all over, because they let go of the gas.
What happened? It all went south - huge. As I write this morning (8:12am EST), the yen is trading at 78.50 to the dollar.
Meanwhile, on the eastern side of the Pacific pond, the Producer Price Index numbers came out yesterday - and they weren't pretty. During February, PPI rose 1.6%, against a consensus estimate of 0.7%. For the year ending February 28, the PPI rose 5.6%. (report here)
Tomorrow, the Consumer Price Index numbers come out - and if the PPI numbers are any gauge, they do not look promising.