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

To: RockyBalboa who wrote (4159)	2/10/2008 7:08:35 PM
From: RockyBalboa	Respond to of 71456

I dont evne want to look at agriculturals. Guess, bakery is becoming really expensive. Wheat opened with a huge gap, and is up 5.5% from the last close. ...and like 60% in 3 months. Nuts, nuts, nuts! (Bid limit up with 2400 contracts at 1169.75 +60 ) What should traders do? In this case they buy Rice, Oatmeal, Soy...whatever. I guess I will convert to eating electronics, they get cheaper by the day. Too bad I am no commodity expert. I would make money hand over fist and not squeeze eights and teenies from bonds and currecnies.

To: RockyBalboa who wrote (4159)	2/10/2008 7:09:35 PM
From: Real Man	Respond to of 71456

I believe the dollar/Euro downtrend may last well into the Summer, as the Fed cuts rates to 2%, while Euro rates stay put. Once the Fed signals the cuts are done with and the Euro economy weakens some (so that Trichet becomes less hawkish and more inclined to cut), perhaps, we can talk about the dollar rally, from some lower level. My guess would be down some more. That is, if no major breakdown happens in these markets. We should see US current account balance improvement soon, but probably not enough for a sustained rally.