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Dollar is ready to take on Euro while Yen is ready to be the surprise come back currency as carry traders push the currency up
Sam Adelton
Oct. 7, 2007
Remember the US dollar bears that predicted the currency will fall below 70 in Dollar Index in no time? Well there is lesson to learn from the last weeks Dollar rally. When all start talking about doom and gloom, it is time to think in contrary. Those of you who did think like that are smiling now.
US Dollar and Japanese Yen are two currencies that will make surprising comebacks. The reason is that the market place is just like a pendulum. The pendulum can go so far at a time. The stock market and the emerging economies have reached the extreme levels of prosperity. It is time to give back so ground and come to reality.
Europe is much more badly affected from subprime mortgage scam and fiasco that the US economy. The ECB will lower rates and add liquidity like never before. The interest rate gap and projected gap will keep US dollar going up slowly but steadily.
The Japanese economy is actually the strongest developed economy. Japan gains a lot with Chinese economic growth. The trade surplus in Japan, the deficit level and the fact that Japan just came out of a deflation are the reasons to believe Japanese economic growth prospects are on great shape.
US Dollar and Japanese Ten have bottomed out. It is just the question of time when they make all time new highs. Can you believe 60 Yen to US Dollar and 0.80 Euro to 1 US Dollar? That is exactly what will happen by the end of 2011. It is time to look North for the US Dollar and Yen.
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