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USD Bears Need to Keep Their Egos in Check
by S. Wade Hansen I've been talking about a weakening U.S. dollar (USD) for a while now. I've talked about the EUR/USD climbing to 1.5000. I've talked about the USD/JPY falling to 105.00. While I've talked about the USD losing ground, however, I've also been sure to mention that I don't believe the USD will dive into any sort of free fall or lose its status as the world's dominant currency any time soon. I mention all of this because I have had some people ask me if the USD is ready to roll over and die and if they should start leveraging their accounts into bearish USD trades. Any time I see traders flirting with fanaticism, I start to worry. Please take note of my answers to the following two questions: Is the USD going to decline in the near term? Yes. Is the USD going to fall into the murky abyss? No. Jonathan Laing made a good fundamental case for a resurgence of the USD in his article "A Comeback for the Greenback" in this week's issue of Barron's. He points out how the following fundamental factors---as outlined by international investment research firm GaveKal---favor a strengthening USD (especially in relation to the euro (EUR)) in the next few years: To see what fundamental factors GaveKal outlines to support its bullish USD claims, click here: [url]http://www.pfxglobal.com/index.php?option=com_content&task=view&id=1319&Itemid=188[/url]
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- trader69
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