With the latest selloff around the world over the last week one would expect the U.S. Dollar to be a safe haven. That has not happened. Barely a little rally, and down hard today, even as the stock market was down. Admittedly, the U.S. stock market did not look as weak as I expected it to look after the selloff in Tokyo overnight. Silver and gold were down sharply today, but seemed to hold up well. I expect them to regain strength as the dollar looks set to plunge through the floor. A weak rally in the U.S. long bond also. It will be interesting to see how the stock market holds up in the coming days as the dollar will surely plunge.
Here is the chart of the dollar: