The US dollar resumed its weakening trend despite market expectation for further interest rate hikes. Different Fed Governors have questioned the perception that higher interest rate is positive for USD...
Once again, we are awaiting the resumption of the US dollar's downward trend. Soon after the Sterling and the Euro broke through key resistance levels, they slumped.
The recent dollar rebound is expected to be short-lived. This provides investors with an opportunity to establish investment positions that will take advantage of further dollar weakness that we expect to come in the first half of 2004
The strength of the Japanese Yen is expected to continue and drag Asian currencies with it, although the risks of a near term Chinese Yuan revaluation are fading.
Dollars & Sense
