In my last
in August, I said I was "looking for the upward move in the EUR/USD to continue toward 1.4750 before a short period of consolidation and a final push up toward the psychologically important 1.5000 level." I also pointed out the correlation between euro/dollar and the U.S. stock market. So far so good.
EUR/USD has moved up to 1.4600, in line with the ongoing rally in the
. I expect this trend to continue; indeed, continuing across-the-broad weakness in the U.S. dollar is on the cards. What other outcome could be expected now that the dollar offers the lowest interest rates in the G20 countries? (Three-month dollar London interbank offered rates have dropped to dropped to 0.30% compared with 0.37% for the yen. It's been decades since it was cheaper to borrow dollar than yen).
Clearly then, there are going to be some excellent trading opportunities in EUR/USD, and the other dollar crosses, over the coming weeks. Subscribers to my Daily FX Trading Service (all sent via Email) will be alerted to these opportunities. If you would like to trial my FX Service, then send me an
At the time of publication, McKegg had no positions in any stocks mentioned, although positions can change at any time.