Is it Warren Buffet or is it the FED?

[MickMason]

7-2 for the MPC in favor of a cut, Sweden a .50 cut, ECB rumor of a cut, and the Fed raising......not much of a dilemma where to put money!

'Buy dollars on dips' seems to be right across the board, they're even selling Yen now.

Three years ago it was all about the current account deficit, now everyone's gone crazy on interest rates, what about the real fundamentals

Ah well, if in doubt just buy dollars, who am I to argue!


Mick

[Habib]

I think FED is also quietly trying to keep Euro above 1.2000 bucks. Sure they did not want a weak dollar for political reasons, but they most definitely do not want a very strong dollar either or all the recent gains in the US economy may be at risk of getting wiped out.
Only they are not making their minor intervention public lest the sharks may get the smell in which case they will either have to let go or spend even larger amounts to keep Euro on life-support.
But you are right, for at least another 6 months or so, currencies on the other side of the pond (and even beyond) will retain a downward pressure. However tr(e)ading with caution is the need of the hour IMO.