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Shorting the US Dollar

AlfredSokol said: "There have be tons of institutions/people etc who are short the US dollar. Can a short squeeze occur in forex and what would it look like? And the people who are short the dollar, is it okay to think of them as anti-American? And who are these folks? This topic is not getting discussed too much, but it should be."

Pb3190 said: "I don't know if I would say anti-american would be the right term for them. I certainly wouldn't want these people running the country, but I can think of worse things people do to make a profit."

newinvestor123 said: "Free markets work best independently of anything besides the desire for profit. To think of them as anti-American (unless they are, indeed, trying to manipulate the currency for political reasons) goes against free market principles. If those who are short the dollar are anti-American, that implies that they shouldn't be doing it, which undermines free market philosophy. I think a short squeeze is possible, and anything less than a 25bps cut would probably trigger one tomorrow."

lil dickie said: "I think a short squeeze is coming. Everyone is anti-US these days...including our currency. But we will bounce back like always."

rcajht said: "Hi guys I do not think so, look at the chart, I believe EURUSD is making head. forex.stoxline.com/instrument.php?i=EURUSD"

lil dickie said: "The interest rate decision from the Fed should have a lot to do with it."

rcajht said: "Here is link for EURUSD chart, news and analysis: [URL="http://forex.stoxline.com/instrument.php?i=EURUSD"]http://forex.stoxline.com/instrument.php?i=EURUSD[/URL]"

Airelon said: "Well, seasonally, the US Dollar Index rises at this time of year, and thankfully, we're starting to see some strength there. I truly hope this continues and would like to see the USD start changing it's very long down trend. A rate cut usually translates into a weaker dollar, but does not necessarily mean that the Dollar will fall. It all depends on how the market interprets the move. For instance, if the market feels that the move will assist the economy in the long run ([I]and no rate cut is generally felt in the economy for about 6 months[/I]) then the USD can actually rise. We're starting to see that. And I'm not sure that the market really wanted a rate cut to tell you the truth. I'm half-wondering how much of the recent fall was because the market is smart enough to know that for the health of our economy - we don't want any more rate cuts. At this point, it's very much a wait and see game. For my investment ([I]ultra-long term[/I]) portfolio, I'm a buyer. For my short term trading? I'm not a buyer. We're seeing a contra-seasonal move here these last couple of days. December isn't over with, so we won't know if it's completely contra-seasonal in accord with the December Christmas rally until the 25th. The best news I've seen in a while though, is the recent upward moves in the USD, which generally continue until the first weeks of January. So considering that fact, perhaps the recent up move was anticipated by hedgers . . . On the other issue, I try to do what is best for the economy of which I am a part. What benefits it in the long run. "Profit at any cost" is not the best strategy when thinking long term. There's lots of ways that profit can be made in the short term, but takes a dump on our economy. Just ask the folks that run Wal-Mart. . . . :)"

lil dickie said: "The next few months will be a big test for the dollar."