The gyrations in the foreign exchange market spurred by the panicked response to Chinese machinations may have been the last spasm before the summer doldrums grip the dollar. The Dollar Index had its worst week in nearly two months, but all that really happened was that it moved to the lower end of its ranges. The recent string of US economic data suggest that Q2 growth is closer to 3.0% than the 2.3% of the most recent revision, and that Q3 has begun on firm footing. The speculative market and many investors are long dollars in anticipation of a Fed hike in September. Even some who harbor strong doubts do not want ... (full story)