“Dollar Bears Will Soon Have Had Their Day”
“Dollar bears should soon be hiding their faces.
A combination of soft U.S. economic data, over cautious Fed officials and sliding Treasury yields have all raised expectations of more quantitative easing.
As a result, the dollar has been sold heavily over the last few weeks as investors have turned elsewhere for higher returns.
However, the whole dollar-selling exercise has been overdone.
Chances that the Fed will actually ease policy further at its open market committee meeting on Tuesday are slim, to say the least.
Even if the Fed does surprise financial markets with a move, there is growing evidence that other central banks will have to follow suit.” Read more.
“Dollar Bears Will Soon Have Had Their Day”
Nicholas Hastings
Wall Street Journal, August 5, 2010.
Image by renjith krishnan / FreeDigitalPhotos.net.
