I have been thinking about this for some time as I watch the USD drop across the board. The end of QE1 brought about some seismic shifts in financial markets in 2010, with the Dollar skyrocketing last summer after QE1 ended and the Euro Debt crisis began.
I would like to use this thread to exchange ideas on how all financial markets, specifically forex, will respond to the ending of QE2 which is scheduled to end June 30th 2011.
Personally, I think that the end of QE2 will eventually cause the Dollar to rise and US stocks to fall sharply if another European debt crisis occurs. All the chatter lately about the Dollar losing its reserve currency sounds like exactly like the type of stuff we heard last summer to the tune of "The Euro will collapse before the end of the year"
The types of statements are normally a sign to fade the trend. While the situation in the USA is serious, I dont believe there is ANY alternative currency even close to supplanting the dollar...Therefore if another crisis strikes AFTER QE2 I think the Dollar may be in for a huge rally.
I would love to hear your point of view.
Happy Trading
I would like to use this thread to exchange ideas on how all financial markets, specifically forex, will respond to the ending of QE2 which is scheduled to end June 30th 2011.
Personally, I think that the end of QE2 will eventually cause the Dollar to rise and US stocks to fall sharply if another European debt crisis occurs. All the chatter lately about the Dollar losing its reserve currency sounds like exactly like the type of stuff we heard last summer to the tune of "The Euro will collapse before the end of the year"
The types of statements are normally a sign to fade the trend. While the situation in the USA is serious, I dont believe there is ANY alternative currency even close to supplanting the dollar...Therefore if another crisis strikes AFTER QE2 I think the Dollar may be in for a huge rally.
I would love to hear your point of view.
Happy Trading
Twitter: @TrendersGame