Internationally & specially in US the bond yields are supportive of higher Dollar prices. The other factors determining the higher Dollar prices are the fear factor created by Eurozone. Many countries there are on the brink of default, had they not been supported by the special fund created by Eurozone . This in turn will weaken yen & the new carry trade will begin from Dollar to Yen. But in this whole process there still remains the threat of sovereign defaults. This is a long drawn picture it will not happen in near future. But this will be actual course the financial markets may take. Till then the ride will be bumpy & very volatile. Another scenario that may emerge is China & its property bubble which will eventually burst The ? is when & how, but when ever it happen it will create a much bigger void in financial & commodities markets than people can ever imagine.
Views Given By TrendCalls Team
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