USD and rate cuts

Discussion in 'Forex' started by Daal, Aug 18, 2007.

  1. Daal


    I cant possibly see the dollar holding its own if rate cuts are coming. That market seem to have spoke yesterday that the euro will rally if thats the case.
    with the negative carry getting better and the flight to quality calming down(it can only last so long)it seems to be the easiest money in the world to go long eurusd but I cant help to be skeptical since money dont grow on trees, what do you think
  2. Not necessarily. USD could stay steady or go up after rate cuts, the Euro zone and Japan could just pump out a ton their own currency to counteract the effects, in effect global inflation would result, with the USD steady against foreign currencies. Only problem is you're gonna have to use Benjamins (Bernakes) to buy a loaf of broad. lmao