Currently short against GB with an indefinate time frame.
2006-12-03 20:27:52 · 5 answers · asked by jackie j 2 in Business & Finance ➔ Investing
The last I heard, analysts were predicting that it was going to continue to slide for the next few weeks. It's on the back of a 6-month or so downturn, but it seems to be hitting bottom at the moment. The fervour of the last week certainly can't last, and speculators are going to start getting a little cagey about screwing the dollar in a couple of weeks.
It underpins far too much of the Forex system for anyone to declare open season on it. However, how much it recovers is going to be, in large part, down to the Asian central banks, who have a habit of hording the USD. I'll predict that China is probably going to try to prop it up eventually, otherwise their export sector is going to be in some problems, considering the Yuen is going to appreciate significantly against a falling dollar. Their entire 'industrialisation' at the moment seems to rest on an undervalued currency (compared to the more advanced economies), and they're not going to want the dollar to take much more of a beating.
2006-12-03 20:33:39 · answer #1 · answered by Patrick 3 · 0⤊ 0⤋
You received an excellent comment from Patrick L. And from the other responders also. The problem with the dollar is that the U S government is totally inept. Against that ineptitude you have the situation that the rest of the world is stuck holding a pile of dollars which they do not wish to see loose a lot of value. If it were not for that fact and the fact that they depend on the U S as their export market, the dollar would have already fallen 50% in value. It is that over valued at the moment. So what will happen to the dollar is a tug of war between those attempting to prop up the value and the propensity of the dollar to drop to where it belongs. The U S government would dearly love to see the value of the dollar fall. Keep that in mind. A weaker dollar, they believe, would do wonders for their balance of trade problem. Fat chance.
2006-12-04 06:50:23 · answer #2 · answered by Anonymous · 1⤊ 0⤋
Until the US stop poking its long nose on other sovereign nations. They spens so much money spying and supporting other nations so they have full control but are they succeeding?
A lot of nations and people are getting sick of this kind of attitude and it is causing an effect on their own economy.
You cant keep on forcing China to buy your wheat if they are already producing it.SO mind your own business and watch your money grow to be the strongest in the world.
2006-12-04 04:40:07 · answer #3 · answered by wolfass 3 · 0⤊ 1⤋
for about the next two years
2006-12-04 04:31:20 · answer #4 · answered by tom4bucs 7 · 0⤊ 0⤋
as long as gold is strongggggggg
2006-12-04 06:47:18 · answer #5 · answered by shuk_anil 2 · 0⤊ 0⤋