Need forex advice for Americans(USD) making residence purchase in Czech Republic...

Discussion in 'Forex' started by Syprik, Aug 15, 2008.

  1. Syprik


    Back in mid-july, recommended to my gf's family that they wait to purchase/close on an apartment in Prague, anticipating that the USD may soon bottom out vs the majors. Koruna (CZK) has now significantly weakened from ~14.4K/$ to 16.8K/$ and the parents are obviously quite pleased for waiting. But now the timing to close on the apt is becoming rather finite, so wondering what the forex gurus have to say at our current juncture after such a large and quick move?

    I'm an index trader, so my fundamental/long term understanding of forex is limited. What I'm thinking of telling them is let's wait another 1-2 weeks, and see if commodities like oil hold $110/gold $750 etc.

    Any reason why the USD:EUR pair will lose current momentum and fail to leg down to the 1.43-1.44 previous Jan/Feb basing? I've told them that if it hits that area, it may be best to lock in at the current Koruna rate. Any feel that it will take a break of $110 oil for the pair to continue the move towards 1.44?

    Any input would be great. Tx.