Jul
12
The US dollar is on a downward trend, and will probably continue so for at least a few months to come. Some brokers are probably making a fortune shorting the US dollar, but beware, the US dollar has risen occasionally over the last few months, and any small time traders making risky contra trades risk being caught out, and potentially making a big loss.
The Australian dollar has been on the up-and-up. Will it rise any further ? Presently at 86 cents to 1 AUD, the Australian dollar is expected to rise a little more, possibly even as far as 90 cents by Christmas. Backed by strong fundamentals and a high interest rate, it looks good till the end of the year, at least.
The New Zealand dollar, with a phenomenal interest rate, has attracted speculators. The central bank, wary of speculation, has sought to bring the dollar down by selling it on the open market. So far, that has done little to dampen the enthusiasm of speculators, but it’s likely to dip, just a little, before Christmas. If you play this right, the rewarding interest rate may make this rewarding.
The Japanese yen, with it’s rock bottom interest rate, remains the favourite borrowing target. Traders presently love to borrow the yen to invest in the AUD and NZD. Any minor correction could see this swiftly unhinged. Extremely risky.
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