If the US invervenes in the dollar how much does USO go down?

K

KeithOmalley

What are everyone's thoughts and opinions if the US comes out and actually buys dollars on the open market. How much do you think the USO would go down right away? And what would go down more on a % basis GLD or USO?

I was trying to do research and last time something like this happened was in September 2000 when the euro was at .85 cents and the g7 came along and bought euros in a coordinated event. The euro looked like it went 4 cents but when I tried to find how much oil moved it was difficult because that same week Clinton released 30 million barrels of oil from the SPR because oil was too expensive at $38
 
Buying dollars would be taking liquidity out of the system. USO will go down but it would down a lot less than everything else IMHO.

Intervention to support a currency will probably be proven ineffective in the long run anyway.
 
Quote from The Kin:

Buying dollars would be taking liquidity out of the system. USO will go down but it would down a lot less than everything else IMHO.

Intervention to support a currency will probably be proven ineffective in the long run anyway.
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i did think that for a moment, but why i disagree with you is because one of the main reason to do this would be to bring oil and commodity price down. what other reasons would there be?
 
America isn't the only player in the consumption market anymore. I read China is adding 25,000 cars to their roads daily...

Today's oil consumption still exceeds today's production so until this equation equals out oil is going higher regardless.
 
Quote from KeithOmalley:

i did think that for a moment, but why i disagree with you is because one of the main reason to do this would be to bring oil and commodity price down. what other reasons would there be?
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Buying dollars would be costly and useless. If you want the dollar up and commodities down the answer is to raise US rates. Plain and simple.
 
Quote from The Kin:

Buying dollars would be taking liquidity out of the system. USO will go down but it would down a lot less than everything else IMHO.

Intervention to support a currency will probably be proven ineffective in the long run anyway.
More...

Pretty much right as FX intervention has hardly ever proved effective and simply provides improved points to get into the trade.
 
Quote from Bogan7:

Pretty much right as FX intervention has hardly ever proved effective and simply provides improved points to get into the trade.
More...


check out sept 2000. becuase the g7 came in and basically took the euro off its lows to where it is now it was the last time a big intervention happened. I re
 
Quote from The Kin:

America isn't the only player in the consumption market anymore. I read China is adding 25,000 cars to their roads daily...

Today's oil consumption still exceeds today's production so until this equation equals out oil is going higher regardless.
More...


ok? what does the amount of cars have to do with my question?

What are everyone's thoughts and opinions if the US comes out and actually buys dollars on the open market. How much do you think the USO would go down right away? And what would go down more on a % basis GLD or USO?

i understand long term demand issues. but i'm just asking with the amount of people long te oil market will gold go down more or will oil go down more in the 5 minutres after a G7 gets involved.

N
 
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