US Dollar at Record Lows ... Again

The US Dollar has made another record low against the Euro this week, reaching 1.4739 (EUR futures market) on Wednesday afternoon (November 7th). The US Dollar is also low against many other currencies including the British Pound, the Swiss Franc, the Canadian Dollar, the Australian Dollar, and the Chinese Yuan, proving that the decline is because of US Dollar weakness rather than any other currency's strength.

The reason that is being given for Wednesday's lows, is that the Chinese government is going to sell $1.43 Trillion in exchange for Euros and other currencies, however, the Chinese are only selling their dollars in response to the continued decline, because they are losing money every day that they continue to hold onto US Dollars.

The US Central Bank has no interest in strengthening the US Dollar, as they are continuing to lower US interest rates, which makes the US Dollar even less attractive to long term investors, thereby perpetuating the decline. The weak US Dollar also affects oil, which is poised to go over $100 per barrel, and gold, which is poised to break its all time high of $875 (gold futures market).

The EU and UK Central Banks are going to release their latest interest rates later today (Thursday), and it is expected that they will keep their interest rates at their current level, which should cause the US Dollar to continue to weaken in the near future (maybe not a good time for any long term short trades on the EUR).