US Dollar Surges 2% In 2 Weeks

The US Dollar Index has gained roughly 2 per cent in recent trading, rising from around 80 to nearly 82.

It the rate of the US Dollar to the British Pound is now 1.97671 and the US dollar to the Euro is at 1.34425.

According to analyst Sam Kirtley of The Gold Prices Newsletter, the USD has bounced on a key support at the 80 level. “In recent weeks we have seen the US dollar trading very close to and if fact dip under, the crucial support at 80. Although the US dollar has not broke the 80 level this time around, it is only a matter of time before this crucial support is broken and the US dollar will begin to plunge. When this happens, gold prices will soar.”

If the US dollar continues to fall, this means that US exports will seem cheaper in other countries. This may boost the US economy, but a great deal rest on what the Federal Reserve decides to do with interest rates. A rise in interest rates would boost the dollar but cripple the housing market and mortgage companies that are already in chaos.

Where do you think the US dollar is going?

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