The dollar is rebounding thanks to eurozone weakness.

On Monday, declining crude oil prices and rising US stocks helped push the dollar to a six-month high against the euro. Today, the euro lost more ground against the dollar. It fell to $1.4900 after a new report showed that the US trade deficit contracted in June.

Can the dollar continue its climb? Andrew Gordon in Investor’s Daily Edge says the short-term outlook is good for the buck. It could rally by as much as 15 percent. But expect formidable resistance soon. More from Andrew below…

I walked into the University Place Branch of Bank of America on Saturday morning and was eyewitness to a shocking run on the bank. An unruly crowd had taken over the lobby of the branch. Every station in the normally deserted suburban banking center was full of customers.

Southwest Feels the Love; Minimum Wage Bump; Qualcomm and Nokia Accord; Fertilizer Firm Reaps Rewards; Unemployment Claims Mount; Ford’s Worst Quarter in History; Dow Unable to Recoup Losses; Gaming Taking Off in Macau.

Consumer spending, which accounts for more than 70% of the economy, will be seriously threatened in the months ahead, as prices continue to rise, wages plateau, and government stimulus checks wear thin.

We’ve been warning you since the start that the subprime crisis would have some real staying power.Indeed, every time optimistic prognosticators have predicted an end to this global financial debacle, we’ve had the same response: Don’t you believe it.

The Dow Chemical Co. (DOW) yesterday (Thursday) announced its plans to buy rival Rohm and Haas Co. (ROH) in an $18.8 billion deal, $3 billion of which will come from Warren Buffett’s Berkshire Hathaway Inc. (BRK.A, BRK.B). News of the Dow buyout sent Rohm and Haas shares soaring over 60% by midday in New York.

Editor’s Note: Money Morning’s William Patalon III says crude oil prices above $142 a barrel and the 20% slump in the Dow Jones Industrial Average (DJI) since October are the chief concerns for investors.

Editor’s Note: Bill Bonner wore a brown polyester shirt in the ’70s. The polyester shirt is gone, but ’70s-style inflation is back. So is ‘30-style deflation, says Bill. The Fed is doing it’s best to combat deflation by juicing up the markets with more easy money. But in doing so they’re pushing the price of commodities through the roof…

Compared to Monday, gold didn’t do much of anything on Tuesday, although it managed about a $6 gain. Silver was under some pressure right from the London open. Every little rally was met by resolute selling, and silver finished down 13 cents in the spot market.

Kodak Announces $1 Billion Buyback; Kroger Lowers Prices, Posts Profit; BP Breaks Ground on Wind Farm; Reliance and Dreamworks in Talks; Lukoil Joins Up With Italy’s ERG; Wachovia Brings in Goldman Sachs; Dow Hikes Prices; Yahoo and Microsoft Back in Talks