The U.S Dollar is thinking whether to Rise or go down?

I heard that the U.S dollar was climbing up. So I thought, since the U.S dollar is on a hike, why not invest some money on it, and see what happens and to my surprise I earned some profits. With that profit I went for some merry Christmas shopping.

So friends, yesterday the dollar rose 0.4% against the sterling and 0.1% against the Euro. Like me, many investors enjoyed the profits on the U.S dollar. But that happiness did not remain for long . Since, the U.S dollar was again on the declining side.

And in-addition to that, according to BNP Paribas, it is anticipated that the Dollar may drop against the Euro through the end of this month due to a depression in housing data will slow the U.S economy. The U.S economy will be slower than the anticipated slowness in future. The housing data is still going to be on the deteriorating drift.

It is estimated that the U.S dollar will decline to $1.3280 per Euro by year-end. And it is also predicted that the Fed will reduce its standard rate to 4.5% in 2007 from 5.25% as its present rate.

Let’s see how the capricious markets will show their statistics at the end of this year---