Dollar Falls Vs Euro, Yen On China Reserves Report
Monday, October 26, 2009. TOKYO (MarketWatch) — The dollar fell against the euro and the yen in Asia on Monday after an official newspaper of the Chinese central bank said China should cut its U.S. dollar holdings, adding to concerns over the unit’s global reserve currency status.
The dollar could weaken further later in the day, particularly against the risk-sensitive euro, which is also benefiting from stronger share markets, dealers said.
During morning trade in Tokyo, the People’s Bank of China-affiliated Financial News reported that China should shift more foreign reserves away from the dollar and into the euro and yen.
The report encouraged Asian hedge funds and other short-term players to sell the U.S. currency for its European and Japanese rivals, dealers said. That sent the euro briefly to $1.5064, refreshing its highest level since Aug. 11, 2008.
But the greenback may hold in a Y91.50 – Y92.50 band for the rest of the day, Societe Generale’s Saito said. Any continued rises in U.S. long-term interest rates, ahead of $123 billion in U.S. government debt offerings this week, should support the unit in the coming days, dealers said.
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{ 7 comments… read them below or add one }
Larry,
I have recently started seeing articles that the market rally has started losing its breathe and is showing signs of correction. You are one of the early predictor of the beginning of this current stock market rally in March. So, I wanted to get your thoughts on this. Do you think the market is getting into the correction mode? If not, what would be your prediction for the short to intermediate term outlook. Appreciate your inputs.
Larry Edelson Reply:
November 17th, 2009 at 3:17 pm
Any correction should be short-lived and shallow.
Larry -you called the turn around in the market in March at the bottom. You also said that it would rally to around 10,000 by the fall, most likely October before there would be a correction and another down turn. Well…….its October and the market has steadily fallen over the last couple of days……Is this the correction you were refering to. Would love to see any comments you might have on that.
Larry Edelson Reply:
November 17th, 2009 at 3:16 pm
Yes, most likely. Market remains firm going into January and February of next year.
We are the subscribers of your real wealth report, however there were some information that we would like to seek from you.
1. Kindly tell us the technical levels to watch in the dollar index and the scenarios that you believe would pan out during the course of next two to three months. How much the dollar index would rise to if the bounce back comes in?
2. Also that we deal in the Indian equity markets and so we would like you to tell us if possible the technical levels and forecast of the NIFTY index or SENSEX in the Indian stock markets.
3. It would be great if you could add a little bit in detail about the Indian markets.
Larry Edelson Reply:
November 17th, 2009 at 3:14 pm
In the DX, watch the record lows at the 72 level. If it holds that, I don’t think a rally an get much higher than 80, before turning back down. I’ll address the Indian markets in an upcoming Real Wealth Report issue.
Stopped out of Kinross. Where do we put the money?
Larry Edelson Reply:
November 17th, 2009 at 3:11 pm
Wait for my signals!
Larry, in your September Real Wealth Report, you showed a gold chart titled, “Gold, Monthly Cyclic Data, Data based from 1792 on.” The cycle curve moves down to a May 2010 bottom, but you have been saying that gold is taking off especially as the dollar weakens. You later stated that technical analysis points to higher prices. Can you explain this divergence? Are shorter length gold cycles in play here that takes out the May 2010 bottom?
Larry Edelson Reply:
November 17th, 2009 at 3:11 pm
They are shaping up for a rally now, followed by a decline into the spring of 2010, then another BIG rally going into 2011 and 2012.
Larry, I forgot to mention that I also subscribe to your Resource Windfall Trader service Thank you, Greg.
Hi Larry,
I am a new kid on the investment block. Can you recommend a discount broker or two?
Will your investment alerts include Agriculture?
It looks like you mostly recommend individual stocks, Historically, how often have your recommended ETF, Spiders … What percentage of your ongoing recommendations do you anticipate to be ETFs etc. as over against stocks?
Thanks,
Mark
Larry Edelson Reply:
November 17th, 2009 at 3:09 pm
I like Schwab as a discount broker. Yes, I am watching agriculture very closely. The composition of ETFs versus stocks in my recommended portfolio will vary, based on a host of factors.