27-08-2013
Us Dollar, Ripe For a Strong Rally
| Us Dollar has not played as a safe heaven in these days of turbulence. Sell-off in Treasuries sparked by emerging countries trying to defend their currency by selling t-bonds looks very close to the end. On the other hand, euro has been very strong ralative to the Us Dollar on the back of slightly improving economic data. That has caused flows of fund toward European peripherals, but optimism seems oddly placed in the face of political debate, particularly in taly . Auctions by italian Treasury will likely prove difficult especially on longer maturities (Wednesday 29th). If this proves correct funds will revert to the Us, possibly causing the hugest USD rally in many years. |