Making my Dreams come true Down Under - The only bright spot these days!

The US got a shock yesterday on their first day back from a much needed summer break, as the Dollar fell across the board and whispers about the Dollars viability in the future as the primary reserve currency kept the greenback down.

Gold went over $1,000 for the first time since February, in a clear sign that the new safe haven is the old standard. The US government is unraveling, congress is under fire, the Dollar is under attack and it is not getting better.

Yesterday, China restarted their rumblings about the US’s habits of printing money, Switzerland surpassed the US as the “World’s Most Competitive Economy” and the word on street is that even the faithful French are beginning to become concerned over the ability of the US to sustain its debt load.

I spoke about some of this yesterday and it is a recurring theme – so expect more tomorrow as this is the story that does not end.

The key event this week is shaping up to me the Bank of England’s meeting. It is expected that they will not change interest rates, however as I mentioned yesterday – it is their stimulus measures that are of most concern to the Forex world.

The instability of the British government over the past few months have left few with any real confidence in their ability to 1) tell the truth and 2) manage big problems. Forex trading is tricky enough when you have to interpret data and trade on that – but to try and guess what a government policy is after they explained it makes it next to impossible.

The Brits have not been clear as to what they are doing – and they have gone out of their way n several occasions to be vague – I really do not expect this to turn out well for them this week. But who knows, they might surprise.

The Aussie is still my favorite – the unemployment is going down, the commodity prices are going up – trade is improving and the Australian Football season is nearing a close, which means the attention will now focus on manufacturing once again (it is widely known that during the AFL season, the blue collar workers in the mines and on the lines tend to ease back a bit – production usually picks up as the AFL season ends).

The Aussie is nearing highs not seen in a long time, it is up hard on the Dollar – even today it is above .857. Had you all been listening to me from the start you might be smiling now, I know I am.