USD, to dive or survive?


Firstly I am new to this babypips forum, although visited the forum on many occasions. I am not an active forex trader but been following the currency market for a few years, since I get paid in dollars and live in pounds. Anyway what I noticed was I sent a transfer for about 20k in dollars and received just under 10k for this, recently I sent a transfer for the same amount and received 14k for this. This is a 40% difference and is quite worrying how two of the most powerful money markets in the world can behave so drastically.

Is there a chance the dollar to pound can go as little as 1.3 in the next six months or am I dreaming? Want to know do I buy or not?

  • Simon

There is so much event peril intimidating next week for the USD that it is tricky to detect what the primary basic driver for the world�s the majority liquid currency will be. The USD will be assessing for the rapidity of its slump within the worldwide droop.The currency�s can secure refuge rank raise above all additional apprehension like it has for the majority of this year. The risk is that the most vigorously contracted fiat money on earth strength misplaces its sacred position as the worlds keep back currency too epic to avert our concentration from? These are the peak of basic drivers in the currency market and there is positively a pecking order of significance.

Exactly what do you see as I currently see the USD is strong against the pound, do you expect this to change quickly? and if so what would you suggest.

Why not just hedge your income in the FX market? If you are happy with the exchange rate right now, you can lock it in for as long as you like. The difference in your wage would be offset by P/L of your hedge in the FX market.

If you think the USD might get even stronger, then you are speculating, taking risks, and things become very Dicey!

In these recessionary times any rise in fortunes of a company is a welcome sight. The showing of Wells Fargo & Co.�s has exceeded all expectations and has led to the highest single day gain in the Standard & Poor�s 500 Banks Index.According to the recent Forex updates these conclusions were drawn by The USD Index which keeps an eye on the fortunes of the USD against the currencies of its trading partner. Since January, the Euro falls the most against the Yen on concerned the (ECB) European Central Bank will cut its standard interest rate to below 1% to stimulus growth.

USD�s upturn is still in progress in early US session despite release of worse than predicted retail sales and PPI inflation report. Today�s centre of the market is in Euro that fails to maintain yesterday�s rebound and is sold off largely. As per the recent Forex updates, EUR/GBP jumped through 0.89 levels in European session. EUR/CAD is turned down to 1.6051 as CAD points higher following oil�s rebound to more than 50. EUR/AUD also dropped to 1.8173 and remains in pressured. The JPY is against USD and Euro but is bounded in tight range against GBP.

Headline retail sales in US suddenly fell down to -1.1% in March, much poorer than belief of 0.3% gain, although previous month�s -0.1% drop was improved up to 0.3%. Ex-auto sales fell down to-0.9% mom against consensus of 0.0%, with which February�s data was improved from 0.7% to 1.0%. Headline PPI fell down to-1.2% against expectation of 0.0% and prolong yoy rate sharply turned down from -1.3% to -3.5%. In March core PPI was moved down as yoy rate was down from 4.0% to 3.8%.

EURO has created the greater level consolidation and created the downfall as predicted from 1.3721 to 1.3556 areas yesterday.
Today the trading range meanwhile Japanese session is 1.3526 to 1.3600.
Euro is predicted to create a rapid fall and recovery move below the low during the early European session and then swing and firm up during mid European.

There has been a come back of skepticism on stock trading and the market is reacting in conditions of a bounce back in the USD and the Stockholm-based SEB currency.