The U.S dollar’s speculation Magic!!!

I thought the U.S dollar will show its magic in New Year. And so it showed. It challenged the Thanksgiving Day losses and recouped itself and stood stable against the top currencies like the Euro and the Sterling till yesterday. But I didn’t think that it will start speculating so early.

So, it is understood that what we think may not happen always, that is the specialty of the world markets.

The U.S dollar was ruling the foreign currency market starting from third day of the New Year till yesterday. But suddenly yesterday by mid-afternoon the U.S dollar slipped 0.1% and 0.2% against the Euro and the Sterling respectively. But thank god it gained 0.1% high against the Swiss Franc. Nevertheless to say that the U.S dollar stood flat against the Yen at Y118.60.

On the other hand, the dollar again speculated on a positive note. Later at the end of the day, the dollar held close to six-week high against both the Euro and the Sterling. And the credit will obviously go to the U.S employment data which showed more positive approach than anticipated. A Financial Analyst at Barclay’s capital said that the U.S rates will not be cut at all in next 6 months or so and this decision would be consistent for the dollar to be strengthened over the next couple of months. And it also heard that the Fifth Largest Oil Producer in the Arabian Gulf, Oman supported the U.S currency and stated it kept most of its five billions of its central bank reserves in U.S currency (i.e., dollar) rather than going for the European Euro.

A currency Economist said that the growth in U.S economic prospects may prove a down-side risk to the Japanese market. However, it is expected that the Japanese market will be cautious against the U.S dollar in future.

World Markets are always capricious!! We don’t know what will happen the next moment. We know only to wait and watch and later on admit the output.

So let’s see how the world markets will play their game.