This Day On The Street
Continue to site
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Global Macro: Funds Head Overseas to Flee U.S. Debt Uncertainty

NEW YORK ( TheStreet) -- The U.S. dollar has been the main casualty of the recent government debacle.

As can be seen in the chart below of the USDCHF currency pair, the dollar and safe-haven Swiss franc have traded in a volatile range against each other.

The range-bound trade can be attributed to the genuine uncertainty that investors face right now. They know that once a deal is passed, the dollar will have a relief rally, catching those currently short in an unwanted squeeze position.

But until that point, no one wants to be long dollar either, due to uncertainty but also the general weakness caused by continued monetary stimulus from the Federal Reserve.
[Read: <a target="blank" data-add-tracking="true" href="http://www.thestreet.com/story/12067938/1/all-the-apple-ipad-rumors-here-in-one-place.html"><em>All the Apple iPad Rumors Here in One Place</em></a>]

Due to the difficult decision at hand regarding currency markets, expect very little conviction in moves long or short until the U.S. government resolves its issues or defaults on its debt.

1 of 2

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
SYM TRADE IT LAST %CHG
FXI $40.63 -1.60%
EFA $64.35 -0.16%
AAPL $122.37 -0.50%
FB $95.28 -1.80%
GOOG $633.00 0.17%

Markets

Chart of I:DJI
DOW 17,745.98 -5.41 -0.03%
S&P 500 2,109.00 +0.43 0.02%
NASDAQ 5,128.7850 +17.0520 0.33%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs