Forum > View Topic (Analytic)
This thread was started in response to the Analytic:
US EU Bond Yield Spreads
Rather than simply comparing currencies' overnight interest rates, FX traders pay close attention to differentials in 10-year yields for the market's assessment of longer term interest/inflation rate horizons. The relationship is straight forward.
Ashraf
Maybe you are right. USD will keep rally in next 3 to 6 month. I am thinking about how much it will continue to rally now. But buy USD and sell commodity currency is high risk.
I am thinking about if USD will keep rally into next 3 to 6 month or not. Maybe I will long USD and short GBP. But the signal for USD start rally from now is not clear yet.
Check the commodity price, if the economy is getting better, commodity will rise first.
And it is the USD weakness point.
Have a good weakend!!!
I fully understand your point and I agree with you that in the long term the US dollar will decline against all commodity base currencies.
but I cant see this happing any time soon maybe some time in 2010 but for the next 2-4 months I see US dollar appreciate by 10% against all major currencies excluding Japanese Yen.
Any thought Ashraf
I believe that USD rally is temporary consolidation. it will stop soon, maybe next week. I don't have strategy anymore now. When this USD rally over, USD/CAD will go target 1.05.
I am not really professional on FOREX. But this kind of rally is more like consolidation or profits taking. In my mind, the big picture did not change yet.
I put my capital in CAD when USD/CAD was 1.29. I think it is a very good decision.
What do you think? Ashraf