Credit Crunch Investor

Sell the U.S. Dollar into Strength

Yes, a good article, and containing much I can agree with - but, fundamentally wrong, I think, for the next few months. I believe that we will see sustained US dollar strength for a while, at least against the euro and sterling, because, while the Fed cannot raise rates, the ECB and MPC will shortly be forced to lower them. I agree that the US economy is a basket-case, but, as such, it is further along the road than other economies, which will now feel the impact of declining export orders (as domestic recession causes the US trade deficit to shrink). Oh, and if you want to see an economy that is a REAL basket-case, take a look at the U.K., which has no industry left other than selling houses to one another (I should know, I live there).