Email of the day (2)
Comment of the Day

July 09 2010

Commentary by David Fuller

Email of the day (2)

On the USD
"What is your medium-term outlook for the US Dollar I see the US Dollar Index has encountered major overhead resistance? Also what is you outlook for Sterling against the US Dollar and Sterling Euro as it seems that Sterling's recent rally might be ending against the Euro and maybe against the US Dollar?

"Also could you kindly add an AIM stock Kenmare (KMR) to the chart library?"

David Fuller's view Kenmare is already in the Library and I like the upward dynamics.

I comment on the USD every day in the Audio.

The point I have been emphasising is that the USD was pushed too high as a 'haven' currency. Now that people have relaxed a bit they are refocusing on problems in the US economy. Therefore I do not expect a resumption of USD strength anytime soon, unless there is another big slide in equity markets which are firming at present.

I think GBP/USD is base building in a process which may be lengthy. The same can be said for GBPEUR.

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