Forex considerations thread

Now below parity!

Euro tanks on horrid USA inflation report

Today’s report in the USA will support, will strengthen, the Fed’s hand regarding higher American interest rates. Obviously the war in Europe is hurting the euro, too.

Twenty years of euro dominance blown to smithereens. This is historic stuff.

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Loonie strength attributable to Bank of Canada courage

The Canadians are not fooling around and have taken the bull by the horns!

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I would love for

While I hope they raise rates through the roof, as I’ve got RRSP funds there, The $Cdn seems to slide between 1.5 and parity. Sadly, if they raise rates too high (in the direction of parity), the Canadian economy will tank. They need their dollar to be weak, unless commodities skyrocket. :frowning:

comment seen elsewhere, on the shaky crypto and other currencies out there :slight_smile:

the Euro Stablecoin already broke parity

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Unstoppable Dollar Risks Worsening $71 Billion Asia Stock Exodus

Feel good if most of your assets are held in American dollars! :grinning:

The dollar’s relentless rise is threatening to trigger more outflows from Asia’s emerging-market shares, spoiling hopes of the region making a comeback in the second half.

The dollar has steamrolled through global currency markets lately, benefiting from bets on aggressive Federal Reserve rate hikes.

Prob’ly important to remember, though, that “The Lord giveth and The Lord taketh away” (Job 1:21).

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FOREX-U.S. dollar posts broad gains after unexpectedly strong jobs data

NEW YORK, Aug 5 (Reuters) - The dollar rallied across the board on Friday, notching its biggest daily percentage gain since mid-June against the yen, after a stronger-than-expected U.S. payrolls report suggested the Federal Reserve may need to continue aggressively raising interest rates in the near term.

“This is a much stronger report than was expected. … What it means is the Fed cannot pivot at this point. The Federal Reserve has to continue to hike rates. The folks who are saying let’s take it more slowly are being shoved aside here with this report,” said Axel Merk, president and chief investment officer at Merk Investment in Palo Alto, California.

Link to article

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How to Trade Currencies, Avoid Forex Trading Scams

https://money.usnews.com/investing/articles/how-to-trade-currencies-avoid-forex-trading-scams

Forex trading is rising in popularity amid inflation and geopolitical strife. Here’s what you need to know.

When people think of investments, they tend to think of the stock market. Stocks certainly get the most attention in the financial media. Other markets, such as bonds and commodities, also garner significant interest. However, there’s one financial market that is larger than all the rest put together in terms of trading volume. That is the foreign exchange market, or forex for short.

is again about par with $.

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Yen Hits Weakest Since 1998

The dollar is strong right now all around the Pacific rim.

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Pound is being pounded

The pound sterling has not been this weak against the dollar since Ronald Reagan was President:

GB£1 = US$1 ?

It could happen!

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Weaker dollar brings euro back closer to parity

And, in addition:

The strength of the dollar should stop accelerating when the Fed stops hiking, said Krosby. But there are outside forces that could keep the USD’s value sky high even after the FOMC calls it a day: The current weakness of the euro and other currencies isn’t just about the Fed. It also reflects fears from investors of an impending recession in Europe. They’re flocking to the safe haven that is the dollar, at least for now. Expect the greenback to stay strong for a while.

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Maybe it wasn’t such a hot idea for the ECB to keep rates below zero for so long?

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I thank xerty for that remark, and I agree wholeheartedly.

I have been meaning to post on this matter, on this thread, for a while:

The dollar is very strong and could become even stronger after next Wednesday. I have been racking my brain in an effort to seize advantage of this situation before it evaporates. It’s a “strike while the iron is hot” sort of thing. I am most fortunate in that my assets today are overwhelmingly in USA dollars.

Any thoughts you might have along these lines would be most welcome here. How are you profiting from this situation?

Short Euros maybe, vs USD?

Shorting Euros vs USD is the opposite of taking advantage of a strong dollar…

I thought the question was how to take advantage of expected further USD strengthening. That was my intention.

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That’s a pretty safe bet if you’re time horizon is into winter. When half of Europe has to nationalize their utilities, and issue bonds to pay for the oil/gas, the Euro will have to take a hit.

As long as reporters can continue to cover Joseph Robinette Biden in a blind positive way, the greenback should stay stable while the Euro, and probably GBP, slides down the ramp. I won’t bet against the GBP, though. They may not have a pretender, after all.

We are in Santiago right now.

I cannot get over the value of the dollar here. Dinner last night was two steaks, two desserts, a bottle of wine, and 10% gratuity for 70 bucks. A couple of very large empanadas and fries for lunch was $10. This is supposed to be the most expensive city in South America. Argentina later this week should be interesting.

On top of that, we feel safer here than most cities in the US. They’re doing something right here.

If you can, it is a great time to be abroad with dollars.

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Is this your first time south of the border? :smile:

Argentina is dirt cheap right now in USD. So was Colombia last week.

Bottles of wine at restaurants were what I’d pay for a glass here. Good hotel well under $100.

That’s at the blue dólar unofficial rate, of course.

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