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Strategies & Market Trends : Mish's Global Economic Trend Analysis
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To: Real Man who wrote (67812)8/20/2007 8:50:55 AM
From: ballsschweaty  Read Replies (1) of 116555
 
<It's the basic carry trade principle which rules forex. Lower
interest rates in the US vs the World will result in a fall
of the dollar.>

There's a lot more to forex than relative interest rates. On a purchasing power parity basis, the U.S. dollar is the most undervalued major currency.
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