Uncle Buck...

Here is a good illustration of what's going on in the previous post.  USD has threatened to lose support by daily charts, used so often to make points in a frenetic market environment featuring short attention spans.  A weekly chart showed that a loss of the Q4, 2010 lows, while not healthy, was not last ditch support for Unc.

While support remains lower at the 2009 lows of 74.23, one might think that powerful people in need of selling Treasury bonds (debt) would not want to have such theatrics interfering with the process.  Hence, the jawbones.  There is also the matter of rising 2 year (and other US Treasury durations) yields shining a negative light on current QE and zero interest rate 'official' policy.

The dollar indeed has not looked good technically, which is exactly why it needed to be defended near last ditch support levels.  If the dollar goes, if T bonds go, then the whole enchilada goes.  'Inflationistas' do not seem to understand this.  The inflation regime needs some measure of confidence in the current system to keep going, as is.

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