Attached below is a 40+ year chart of the US dollar-Swiss franc FX.
Interesting that the US dollar has by-in-large been in a major decline against the franc since the dollar was removed from its link to gold in 1971 (and yet today the US dollar still holds "reserve" status).
Chartwise, something has to give within the next couple of years: support or resistance should break in a large way.
Already this year we can see a large divergence in monetary policy direction:
* Swiss parliament expected to discuss the creation of a gold franc - a parallel currency to the official Swiss franc later this year.
vs.
* US Government (and Fed Reserve) "kicking the can down the road" and still trying to use debt to get out of its problems.
And of course outside this is all fiat currencies vs gold. Even the Swiss franc is still loosing purchasing power to gold. Even some central bankers waking up to this (with central bankers becoming net buyers of gold for the first time in 20 years in 2010).
Cheers Scott
USD Price at posting:
$9.66 Sentiment: None Disclosure: Not Held
