LET'S PLAY IN THE FOREX..AND NOT GET LOST! Message Board

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Strategies & Market Trends : LET'S PLAY IN THE FOREX..AND NOT GET LOST!

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To: CapitalistHogg™ who wrote (160)	6/24/2007 5:35:48 PM
From: RockyBalboa	Read Replies (1) of 247

The amazing thing though, was that the carry trade extended to a rather low yielding currency like the swiss franc. The CHF has a rate of only 2.55 so it offers a much less attractive yield differential to the yen which is less than half of the high yielding currencies (USD, GBP, AUD etc). On the other hand speculation against the CHF (for the same reason) is not present. The Swiss is no EUR and does not share the benefits of the big united currency. It has been a dog (or a good borrowing currency) for years and the country has no fundamental reasons for any strength - no commodities, oil whatsoever. Rates are hardly the reason for excessive speculation,... seen from that view. Crystal ball results: The Euro can weaken this week - continued difficult political situation regarding the EU constitution; as well as the cable - Gordon Brown taking over, possibly announcing "adverse" policy changes which will at least create some volatility.

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