FOREX - Trends, Forecasts and Implications (Episode 5: July 2011) - page 260
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The US Treasury is preparing for the worst
https://www.youtube.com/watch?v=uYewcoWJA4g
Yeah, yeah, yeah, they're scapegoating the situation, "on paper", almost like in the USSR...
To Father Christmas, for Christmas...
And the Bears will be up north
Yeah, yeah, yeah, they're scapegoating the situation, "on paper", almost like in the USSR...
Not enough? Then we're coming to you.
The US Treasury is preparing for the worst
https://www.mql5.com/go?link=https://www.youtube.com/watch?v=uYewcoWJA4g
I'll switch to popcorn and beer before August 2...))) The volatility will be great ))))
The United States has had the highest credit rating of AAA since the practice of such an assessment of the country's solvency emerged, so it is difficult to come to terms with the idea that the country is very likely to lose it.
Deutsche Bank analysts have identified 4 possible developments in the US:
According to experts, the second option is the most likely. Even in this case the dollar would be under strong negative pressure. Although markets have already taken note of the possibility of a downgrade, the real downgrade of US debt is likely to come as a real shock to them, and the dollar will lose another 2% against a basket of currencies.
In case the third scenario plays out, risk aversion among investors would become very strong. In the short term this could have a positive effect on the USD, but economists do not believe that the American currency can find the strength to grow sustainably.Nomura Securities strategists warn that the US dollar could lose its safe haven status if the country's credit rating is downgraded from the highest level of AAA.
Experts note that during 4 of the last 5 days the American currency moved in the same direction as the S & P 500 index, while usually their dynamics coincide on only 1 day out of 3. This means that the US currency is no longer supported by investors' risk aversion.
Nomura also underlines that the US dollar has a tendency to strengthen along with rising Treasury yields and thus a declining Treasury bond price. However, the opposite has been the case recently. This can be seen as a further confirmation that investors no longer perceive the USD as a safe haven because they no longer use it as a hedge against a fall in the value of Tregers.
Thus, if the dollar ceases to be a safe haven currency and US interest rates remain below those of risky top-rated currencies, demand for it will fall.
Analysts therefore advise buying AAA-rated currencies such as the Canadian and Australian dollars, the Swiss franc and Scandinavian currencies in the event of a US downgrade. At the same time it is advisable to avoid US currencies until the prevailing market uncertainty has cleared up.
I'll switch to popcorn and beer before August 2...))) Volatility will be great ))))
US debt: markets begin to retreat
https://www.youtube.com/watch?v=yHHa5bP1Mhg
Not enough? Then we're coming to you.
The US Treasury is preparing for the worst
https://www.mql5.com/go?link=https://www.youtube.com/watch?v=uYewcoWJA4g
In the event of a US technical default, where will the EUR/USD pair go ? What are your views?
I wrote yesterday that August 2 is likely to be cancelled
What about volatility ?