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gnutrade.com
New Member
Cash: $ 1.75
Posts: 7
Joined: 06 Oct 2006
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| DOLLAR FALL INFLATION EFFECT |
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The dollar weakened on speculation U.S. government reports this week will show slowing retail sales and inflation in October, allowing the Federal Reserve to consider interest-rate cuts. The dollar slipped on Monday on worries that central banks might gradually shift their foreign exchange reserves away from the currency.
The dollar hit a 2 ½ month low versus the Euro and an 18-month low against sterling on Friday after People's Bank of China Governor restated that Beijing planned to diversify its estimated $1 trillion in reserves. "News that China, which holds the world's largest foreign exchange reserves, plans to diversify its assets could for now support yen buying sentiment,"
The yen's gains may be tempered by speculation Japan's economic growth failed to accelerate in the third quarter. Gross domestic product grew at an annual 1% rate, matching the slowest expansion since 2004.
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Mon Nov 13, 2006 12:24 pm |
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Claudio
New Member
Cash: $ 1.65
Posts: 8
Joined: 02 Aug 2006
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The dollar edged slightly higher against major currencies Monday, rebounding after slumping to multi-month lows last Friday.
The dollar sold off sharply last week after Zhou Xiaochuan, governor of the People's Bank of China, said that China has very clear plans to diversify its reserves and is considering lots of instruments.
The market appears to have gotten ahead of itself on the Chinese reserve diversification story at the end of last week.
However, the short-term technical indicators warn that the dollar's bounce in the European morning is a bit overdone. Short-term strategies will likely favor selling into dollar bounces.
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Mon Nov 13, 2006 7:58 pm |
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LottomagicZ4941
Senior Member
Cash: $ 1.66
Posts: 2633
Joined: 02 Dec 2004
Location: Earth
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One of my worst sector bets was going into Europe thinking I could get a pop from when the Euro gained it's 10% undervaluation.
Perhpas I left Eurpe prematurely. Waited so long for the pop that when I got one I got out. I think it was a top performer after I got out of the sector. But I did okay with REITS:) Although they had a 12% correction right after I went in them!!!! But the back to back 30+% gains more then made up for that!!! May have to research what I went into when I moved the money out of Europe as I think the REIT funding may have come from elsewhere.
I think I moved the Europe money into teck because the teck PEs had come down and I felt that teck had been over avoided just as it had been over embraced.
I'm thinking about putting some of my oil/nat resorces position to Japan.
What do you think about the yen?
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Wed Nov 29, 2006 1:13 pm |
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