Worsening Trade Balance is a major concern for dollar but the US currency may be bottoming against euro and other European currencies
Marla Guthrie
Jul. 9, 2007

The US trade deficit has worsened last month. Most likely, the Trade Balance last month was $-60B from the previous data of $-58.5B. The overall effect on the US dollar is negative.

But there are ample technical and analytic signs that US Dollar may be bottoming against Euro. The Yen and Dollar may rally strongly against the Euro in the next several months.

The Euro zone economies can take as much as 1.36 dollar per euro. If it goes any higher than that will cause a massive slowdown in the European economies. The European central bank is eager not to allow that. Bank of Japan now wants Yen to rise to stop the carry trade schemes. It may buy Yen in open market and raise the rates simultaneously.

Worsening Trade Balance is a major concern for dollar but the US currency may be bottoming against euro and other European currencies.

Worsening Trade Balance is a major concern for dollar but the US currency may be bottoming against euro and other European currencies
Marla Guthrie
The US trade deficit has worsened last month. Most likely, the Trade Balance last month was $-60B from the previous data of $-58.5B. The overall effect on the US dollar is negative.
READ MORE>>

Decline in the rate of increase in wholesales and rise in inventories confirm stagnation in the economy while Asia exports wage and commodity inflation
Sam Adelton
In this week’s report the Wholesale Inventories most likely increased by 0.5% up from last month’s 0.3%. At the same time the wholesales figure has come down from 1.3% to 1.0%.
READ MORE>>

Reuters-University of Michigan's preliminary sentiment index for July points to stagnation with increasing inflation – the effect on bond, stocks, gold, and dollar
Susan Murray
Stagflation is the worst for the stock market. The market normally goes nowhere. It sits in a narrow range and inflation makes the market cheaper over time. Equity holders lose money in real terms.
READ MORE>>

A slump in automobile purchases last month stalled retail sales – the first signal of recession
Andy Robson
People are wary to buy autos on loan. On top of that, the insurance cost on new automobiles owned by the bank is high, as full coverage is needed. Do not even ask about the price of gas at the pump.
READ MORE>>

Fraud and money laundering can create massive banking problems – a serious problem for stocks, bonds, and dollar
Peter Oberois
The cost to banks globally to monitor and stop money laundering has risen by an average of nearly 60% since 2004, a KPMG LLP survey of 224 banks from 55 countries found.
READ MORE>>

Yen making low on carry trades while Japanese Machine Orders rise, supporting rate Increase – a great time to go long on Yen
Marla Guthrie
This kind of opportunity comes once in a while. The Japanese Yen is making lows on carry grade prospects. At the same time the Japanese economic fundamentals point to sharp rise in GDP and much higher rates from Bank of Japan.
READ MORE>>

Cocoa can double in price in the next two years
Karen Zuba
Shrewd futures traders will us the trend and a combination of futures and options on futures to make at least 1000% in the next three years.
READ MORE>>

MORE ARTICLES >>