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Wednesday, August 27, 2008

Tap on US Dollar strength with Limited Risk

For the past weeks, US dollar has surprised us with its great rally.

Reasons for the rally:

1. Falling oil price has created some relieve to US economy.
2. Other countries seem to be in bad economy shape as well. So when the whole world is in trouble, the investment community always favors US.
3. Market expects the Fed to raise interest in the next 12 months.
4. We could have seen the worst for the US banks.

Expects US dollar to continue its rally for the next 1-2 months.

Players tap on this US dollar rally by buying “OVER” for USDCAD, USDCHF and USDJPY OR buying “UNDER” for AUDUSD, EURUSD, GBPUSD.

Trading platform: www.mansion88finance.com


Article from www.forexandbinary.com

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