Buck Advances vs. Most Currencies
Jul 9th, 2009 | By Doug Casey | Category: US Dollar & Forex TradingIn the currency market, the dollar moved higher once again against the euro. Late Wednesday, the euro was trading at $1.3882 vs. $1.3918 on Tuesday.
The yen and pound also sagged. “Fear, trepidation, use any term you like to describe the market bias today, but one thing is for sure, the term ’safe haven’ is back en vogue,” said Dan Cook, of IG Markets..
Traders were keeping a close eye on the G-8 summit that opened yesterday in Italy. But most analysts believe that the policy makers of the biggest economies will focus on ending the global recession, and improving credit and trade, instead of debating the status of the buck.
“Any discussion about the U.S. dollar’s reserve status being challenged has been heavily played down in recent days and draft communiqués that have been leaked indicate no reference to this issue,” said Christian Lawrence, rates and foreign-exchange strategist at RBC Capital Markets.
That could affirm the resignation on the part of Chinese officials and others who may have concluded, albeit reluctantly, that a fall in the dollar would be too self-defeating for those holding large dollar reserves.
“There seems to be a recognition among a growing number of administrations that it would be better to avoid a fresh slide in the U.S. dollar from here,” wrote Simon Derrick, chief currency strategist at Bank of New York Mellon.
Source:Buck Advances vs. Most Currencies
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Doug Casey is a contrarian investor, sought-after public speaker and author of several books. His work "Crisis Investing" held the position of # 1 bestseller on the New York Times list for 26 consecutive weeks. Doug's unusual views on the economy - and just about everything else - have gained a huge following in the investment community, and it certainly helps that his stock recommendations of undervalued junior exploration companies have made his subscribers millions. Now in its 27th year, Doug's monthly newsletter, the International Speculator, is one of the most established and esteemed publications on gold, silver and other natural resource investments. Together with the Casey Energy Speculator, it covers a broad range of carefully selected stocks with the very real potential of double- and triple-digit returns within 12 to 24 months.