Disclaimer: Forex trading involves high risks, with the potential for substantial losses and is not suitable for all persons. The views expressed in this blogsite are those of the author(s) and do not necessarily reflect the official policy, position, or opinions of Global Forex Trading. Excerpt from: Forex Strategies
|  | | May 14, 2008 | | US dollar strength in currency trading an opportunity | The fact that the US dollar is showing strength in currency trading may provide some interesting opportunities to buy other currencies. One forex trading strategy is to buy low yielders, like the Japanese yen and the Swiss franc.
The reason that one might buy these is that, down the road, they may be back in vogue if risk aversion returns and the carry trade unwinds. Bloomberg reports on this forex trading strategy:
``The dollar is going up, which is useful for people who
want to sell the dollar down the road,'' Rogers said in an
interview in Singapore today. ``With things going the way they
are, I would rather buy the Swiss franc and Asian currencies. I
want to buy more renminbi, Taiwan dollar, more Singapore dollar,
some yen. Those are certainly the four I am looking at.'' | Topic Tags: carry trade, currency trading, forex trading, forex trading strategy, Japanese yen, risk aversion, US dollar currency trading, US dollar strength | |
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