Chinese reverse diversification

Why can't forex always be so simple......finding it hard to go to sleep tonight.
Theories, points of view, most welcome. Which currencies most to gain? Could gold benefit? open floor.

Thanks.

US Dollar has been unable to rally. Bank reserves of European currencies and the theme of "selling dollar on rally" have attempted to kill any dollar rally.

China is sure concerned about US Dollar weakness.

Ofcourse you would want to hold a currency that's reliable and steady. The performance in US Dollar is simply unable to get stronger and rally in the foreign exchange markets.

But on the other side, we can't say that GBPUSD is going to hit 2USD, and EURUSD 1.3. ECB didn't welcome high FX level on EURUSD. Also it's very hard for dollar to rally to the 1.20.

I only see a tight range in FX markets, absolutely, no volatile moves, no range breakouts.

And I am afraid we are going to live for months in the 1.27dips - 1.29highs trading range again.

Let me tell you, yesterday BoE rate rise sure helped the US Dollar get sold across the board. The thing is, with ECB and BoE hiking more, the interest rates narrow, and that will weaken the USD carry trades over time, sooner than later.

Regarding Gold, there is a scope that we see 650USD levels why not. Technically, there is a lot of momentum and If USD slide continues, we can touch it. That opens the topic of USD-Gold Correlation.

But sterling pound is one of these currencies may gain a lot in the near term versus USD.

Thanks Ahmed, an insightful response.

K.

yeah the fundamental news came out really crappy for the dollar, my best advice is to get out if your short even with a small profit and wait for some clear direction and some fundamental data as well... im short now with a big stop but im risking a very small amount of capital ie miniaccount i would not want to be short with a large account, iw ould have def closed this trade already, this is just a speculative trade on my part..

well iguess its time to breakout the range trading system lol

sad to say but i entered a short .. didnt put my stop.. was bus all day.. came back and saw the distruction .. my short is still open .. looking for the euruad to drop a little before i close it out .. my loss it great

any advise from the pros?

use stop protect ur position....

thanks enoc2g for reply, sorry for bad reult Tatton, next time.