And a Look Ahead Into Prospects for 2012 FX Fundamental Analysis
FX 2011 Recap Analysis
F
orex markets opened in January 2011 with the Euro/Dollar (EUR) rate at
1.3337.
Despite all the trials and tribulations between then and now that have included numerous sovereign downgrades, related and consequent misplaced assumptions on loan repayments, bank failures, spiraling costs of servicing debt, numerous
EU summits,
intervention, ECB leadership changes/policy reversals and - as we go to print (December 20th) - record short speculative open interest in the EUR/USD, the exchange rate itself is currently trading at 1.3132 and at that level is almost incredibly only slightly weaker on the year, by less than two percent. What doesn’t kill something makes it stronger?
IMF Of course the USD itself has 10 FX TRADER MAGAZINE January - March 2012
battled its fair share of financial elements with ratings downgrades, potential government shutdowns, twin
deficits, stubbornly high
unemployment and, despite an aim of transparency by the Fed, market confusion over monetary policy.
But again not much has seemingly changed on a face value analysis of the Dollar’s value, with the much- followed DXY
Index starting
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