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Strategies & Market Trends : The coming US dollar crisis -- Ignore unavailable to you. Want to Upgrade?

To: Bubble Watcher who wrote (2710)	11/29/2007 8:43:42 AM
From: Real Man	Read Replies (1) \| Respond to of 71475

I don't think such a target exists, since the dollar is a floating currency. However, the agenda may have been to devalue the dollar against the Asian currencies, which would then hopefully remedy the current account deficit. So far, however, it failed, and given all the talk about a strong dollar policy lately, it seems the heat is on the government to strengthen the dollar. Thus, I think, the cut is not a given for the next Fed meeting, and there could be a surprise. At least, that's how I read the dollar rally here (maybe quite a bit of short covering due to the fear of whatever the Fed might do to strengthen the dollar, and the Euro liquidity injections) Every surprise lately has been to the easy side though as the agenda to save the banks from themselves prevailed, so don't count on it. The Fed will not raise, the best they can do is stay put, they won't even put a tightening bias. There have been a lot of screams from Europe about the weak dollar lately, that may be helping the dollar in the short run too. However, if there is another cut and no cuts from Europe, quite likely, the dollar will fall even further.