Sunday, January 2, 2011

International Issues For Next Week

Last week TrendCalls Team wrote about China & its effects of monetary tightening. This week we will state about Feds stance on Dollar. Fed is carrying a loose monetary policy to revitalise its economy which in effect is playing havoc in commodities markets, in addition to Dollar.  Some commodities are in sweet spot due to its demand supply mismatch. Will the weak Dollar effect continue or the Dollar will harden & real economic fundamentals prevail on commodity prices. The real demand is lagging behind the prices.  US & European economies are not growing fast enough & China is on verge of slowing down so how do we really react to the New Normal coming our way. The artificial stimulated growth which happened due to expanded money supply will also start waning down soon & the world will be back to realities soon.
Views Given By TrendCalls Team

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