| Author | Message | ||
     Mikkymouse Junior Artist Username: Mikkymouse Post Number: 228 Registered: 04-2008 Posted From: 216.111.115.2 Rating: N/A |
 October 9, 2008 Economics Heightened Alert on Many AXJ Currencies Bottom line. We turned bearish on AXJ currencies on May 1, 2008, and have become even more bearish, now that the world is falling into a synchronized recession. Our new forecasts. We see USD/AXJ peaking in the summer of 2009, before retreating toward end-2009. We see peaks at above 10,000 for USD/IDR, 57.0 for USD/INR, 1750 for USD/KRW, 53 for USD/PHP, 1.57 for USD/SGD, and 35 for USD/TWD. There are two trades to do in USD/AXJ in the coming year. We believe the USD will likely rally hard against Asian currencies in the coming months. But when the global economy bottoms, whenever that takes place, we will be looking for a partial recovery in some of these AXJ currencies. This recovery phase is likely to be at least two quarters away, so that trade now is to go long USD/AXJ. |
