Us Dollar Down

[tracker]

Check it out:

http://www.forexdirectory.net/chartsfx.html

Thai baht is following slowly under 36.5 now

T.

[wasabi]

Check it out:

http://www.forexdirectory.net/chartsfx.html

Thai baht is following slowly under 36.5 now

T.

This was posted by a BM named Ki on the website clearstation. I thought it was well stated.

There has been a trend worldwide, however, for central banks to reduce their dollar holdings — from 70 percent in 2001 to 60 percent in early 2006. Foreign experts estimate Beijing still holds more than 70 percent of its reserves in dollars.

http://www.east-asia-intel.com/eai/

A not so subtle propaganda war has broken out between Washington and Beijing over fractious trade and financial friction in the enormous commerce between the two countries. It will climax with the visit of a high-powered U.S. group of officials to Beijing in mid-December.

At Washington 's end, as part of the initial post-midterm election honeymoon, the Bush administration is proffering Treasury Secretary Henry Paulson as its apolitical compromiser with the new Democratic-controlled Congress. As an important part of Paulson’s campaign to pull some economic solutions out of the hat for a lame duck administration, he will head the expedition to China .

Paulson, despite his intimacy with Chinese leaders from his Goldman-Sachs background, got nowhere in a similar trip earlier this year. But hovering in the background this time will be the stronger possibility that a Democratic-controlled Congress might implement earlier threats to impose surcharges on surging Chinese imports. The trade deficit hit a record $23 billion in September with only $5 billion in U.S. exports to China .

The Americans want action on a wide range of issues: reevaluating the Chinese currency to slow the rising flood of imports, adherence to World Trade Organization strictures supposedly opening China markets, and bringing outrageous intellectual property violations (piracy) under control.

None of these are new issues nor are the Chinese looking much like taking radical steps to improve the situation from the American viewpoint.

Beijing is answering Washington’s rhetorical volley with hints it is going to diversify its foreign exchange hoard away from dollars to other currencies and gold. Chinese Central Bank Governor Zhou Xiaochuan told the media in early November Beijing has a clear plan to move its $1-trillion foreign exchange reserves away from dollars.

When a Chinese newspaper reported the possibility Beijing might cash in some of its $339 billion in U.S. Treasury securities, the dollar hit a two-month low against the euro at $1.2848 while U.S. government bond prices fell. Gold and silver zoomed to new highs. Platinum prices jumped more than 3 percent on speculation that China might buy into precious metals.

A shift away from the dollar by China could put upward pressure on interest rates in the United States , which has relied heavily on Chinese, Japanese, Taiwanese and Korean purchases of its debt to finance its huge current trade and account deficits. Some analysts worry such a move could destabilize financial markets worldwide and upset robust global economic growth. If China were to move heavily to euros, for example, Europeans — experiencing their own rapidly increasing trade deficit with China — would suddenly face higher export prices, already a handicap in world markets as the dollar declines favoring American exports and Chinese competition for manufactures grows.

But so far the Chinese have not moved substantially, apparently at least in part as concerned as the Americans about the value of their dollar hoard and income from American securities. There has been a trend worldwide, however, for central banks to reduce their dollar holdings — from 70 percent in 2001 to 60 percent in early 2006. Foreign experts estimate Beijing still holds more than 70 percent of its reserves in dollars.

[cclub75]

Watch out. Next week could be bumpy. We will have a set of macro economic datas about US economy

-sales of second hand houses for october

-Conference board index for consummers (tuesday)

-sales new houses

-income and expenses of households october

-ISM manufacturing index (friday)

That will give some indications about the "landing" of the economy. The USD could react and stock markets too.

[tracker]

wow! check it out, now at 36.0! steep dive

http://www.forexdirectory.net/chartsfx.html

T.

[Barney_the_Dinosaur]

Nice forex link - thanks !

Wonder if it will break 30 before Chinese New Year !!

[tracker]

thanks. Noticed how you can change all the settings of the displayed graph, time, currencies, data?

If it will break that barrier, it will mean a serious world wide correction. It could take place, if the chinese keep their word; selling of a chunk of their trillion reserves they hold in usd...

and it would possibly stop the fed from printing as there were no tomorrow.

[Rinrada]

From June to October 1997......history repeating itself ?...

We woz all Sitting in the bar of the Honey Hotel (soi sip gow) and wondering...

Wheres it going NEXT..?

06/17/1997- 23.20 bt=$

07/17/1997- 30.150 bt=$

08/17/1997- 32.0750 bt=$

09/17/1997- 36.10 bt=$

10/17/1997-37.16250 bt=$

10/31/1997- 40.550

thanks oanda..

[tracker]

going deep! USD - THB 35.8, see link as above

T

[BlackArtemis]

yayyyyyyy And I am planning on transfering $23k American as a down payment on a house.

It's that fun choice of Cut my losses now and pray it doesnt go back up or pray it rises and that it doesn't go down to 25...