USD is Gaining Against Most Major Currencies

[Banana7]

As the markets open in New York today, the USD is ahead against most major currencies.

 

The greenback has pushed the euro down to its lowest level in 11 months, trading at $1.0739 late in New York, compared with $1.0856 late Friday. The dollar was buying 3.2848 lira on Monday, which slumped 1%. The ruble declined 0.3% with the U.S. dollar buying 66.0550. The Chinese yuan was off 0.5% against the dollar at 6.8463, its weakest level since 2008. GBP slide to $1.2493 late in New York trade, backing off gains last week.

 

Trump has pledged to invest in infrastructure , repair roads, bridges, airports, ports will have an enormous impact on the US economy. Additionally, the Federal Reserve's next policy meeting is on Dec. 14, and expectations for an interest-rate hike have risen to more than 80%. 

 

I highly recommend moving your money into USD, it will continue to gain against most major currencies for the next year or 2. Major losers in the next year or 2, against USD, will be big manufacturing exporters to USA, such as Mexico, China, Japan and Korea, maybe even UK.

[i claudius]

Keep wishing

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[YeahSiam]

The move in the USD is extremely counter-intuitive.

The Fed hike's been priced in all year. 25 basis points a year hardly qualifies as monetary policy tightening and rising inflation isn't going to be making US debt more attractive any time soon.

This is a disaster waiting to happen and, frankly, I'd be lightening up on any USD right now, not following the rest of the lemmings over the cliff.

 

[Banana7]

On 11/16/2016 at 10:13 AM, YeahSiam said:

The move in the USD is extremely counter-intuitive.

The Fed hike's been priced in all year. 25 basis points a year hardly qualifies as monetary policy tightening and rising inflation isn't going to be making US debt more attractive any time soon.

This is a disaster waiting to happen and, frankly, I'd be lightening up on any USD right now, not following the rest of the lemmings over the cliff.

 

Yes, you are right about the pricing in of the 25 basis points this year. But with all of the infrastructure spending planned for 2017 and 2018 +, that will increase inflation and the Fed will have to react. Some are now saying at least 2 increases in 2017, maybe 3 or 4 or more in 2018. A major upward trend is beginning and that is yet to be priced in. 

 

What currencies are you holding or recommend and why?

[Dtrump]

I think I heard the election of Trump has caused the currency to soar to its highest level in 14 years. 

[IMA_FARANG]

The Fed will almost certainly raise thei base rate in december 2016.

Yellen will be speaking  around the 10th of December.

Exactly how much the raise will be is unknown.

But as they say Don't count your chickens unttil they are hatched.

 

[lannarebirth]

1 hour ago, IMA_FARANG said:

The Fed will almost certainly raise thei base rate in december 2016.

Yellen will be speaking  around the 10th of December.

Exactly how much the raise will be is unknown.

But as they say Don't count your chickens unttil they are hatched.

 

 

The Bond market is effectively taking it out of Yellen's hands. Something that should have happened a long time ago.

[YeahSiam]

12 hours ago, Banana7 said:

Yes, you are right about the pricing in of the 25 basis points this year. But with all of the infrastructure spending planned for 2017 and 2018 +, that will increase inflation and the Fed will have to react. Some are now saying at least 2 increases in 2017, maybe 3 or 4 or more in 2018. A major upward trend is beginning and that is yet to be priced in. 

 

What currencies are you holding or recommend and why?

 

The infrastructure spending has to get through Congress first - no guarantee that will be plain sailing.

Trump is the self-proclaimed "king of debt" with a history of filing for bankruptcy.

On the subject of rate hikes, it's worth remembering that, at the end of 2015, the Fed was forecasting 3 or 4 rises in 2016; that didn't work out so well.

Personally, I wouldn't be surprised if rates were cut in 2017.

I'm holding gold/silver (and adding more as the price falls) because, 1. I believe inflation is on the way and 2. (more importantly) because, in my home currency (GBP), it's a no-brainer.

[Banana7]

Today is 10th day that the USD has gained against the Euro. This is the longest winning streak since the Euro started, 17 years ago. Never has the USD gained against the Euro for 10 days straight.

 

 

 

[Banana7]

Wow! Did you load-up on the USDs? At superrich today the Benjamin notes are up to 35.6 baht per dollar. GBP is up to 44.2b and the Euro is at 37.55b.