China is allocating some reserves (approx USD 3 billion) to more risky assets, to Blackrock Group - one of the world's leading private equity firms - & a true master of the investment universe.
Kuwait announced it is ending its peg to the U.S. dollar. Instead, they have decided to peg their currency against a basket of currencies. The threat of inflation, driven by 20% growth in money supply generated because of its dollar mopping up exercises prompted the move. My next question is: Will other Gulf States follow? I think it's likely!
On the surface, these two events should not be considered good news for the U.S. dollar; not by a long shot. And yet all of us woke up again to a firm dollar this morning. Good price action in the buck is definitely continuing, in spite of the supposedly negative news for the greenback. That's a little strange, & it leads me to believe the recent dollar rally - although clearly running contrary to the primary downtrend in the buck - may still have more room to run.
Turning to other currencies, the pound was at 1.9719 against the dollar & 1.4646 against the euro this morning, whilst the dollar was at 0.7424 against the euro & 121.46 against the Japanese yen.
Trade Safely, okay?
King of the Birds, Lord of the Skies
Gather ye rose buds while ye may, old time is still a flying;
and this same rose that you see today, tomorrow will be dying.
CarpeDiem: Seize the Day!
- Dead Poets Society
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