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The dollar in 2008 - will it come back?

lil dickie said: "The beloved greenback has been down on its luck for awhile now. People have come to expect a low dollar. But some people think the [url=http://www.ft.com/cms/s/0/eb005896-b8b1-11dc-893b-0000779fd2ac.html]situation[/url] is not as bad as it appears. [quote] These included deterioration in relative growth and interest rate differentials between the US and the rest of the world as well as increased concerns over the health of the US financial system, which was in the eye of the storm as the credit crisis worsened and the US housing market faced collapse. Diversification of central banks’ foreign exchange reserves away from the dollar and the potential exit from dollar pegs by Middle Eastern monetary authorities also took their toll. Analysts say that, on top of all this, US officials in effect welcomed the fall as a means of supporting the economy, giving investors the impression that selling the dollar was a one-way bet.[/quote] All these factors allowed for a falling dollar. If a recession comes the dollar is doomed. Thats why Bernanke and company are working to avoid a recession. Asian and the Eurozone are not working in concert as they relate to the dollar anymore. Lots of uncertainty for sure. What are your predictions for the dollar in 2008?"

rcajht said: "we need US$ come back!!! and it will, for sure."

chahinemm said: "actually i have started doing some fx couple of months back and i have betted on the eur getting stronger for some time now and if the 41 range is not broken it will bounce back up against the dollar. I dont see the us economy strenghtening... the emerging markets are growing at a fast pace and a lot of the big groups are delocalizing to these areas. so the future doesnt look too bright. chahine"

stmk said: "US$ nowaday is weak so it will difficult to come back"

Herry said: "It always up and down, thats the traders make money, if you have automatic trading system and proven the profits."

reanxyz said: "i never thought a weak dollar can do much harm? what i thought is that when US dollars become weak then many people from all around the world will take the chance to trade more with US. so... weak dollars attract more business..? anyone disagree with me?"

lil dickie said: "[QUOTE=reanxyz;60926]i never thought a weak dollar can do much harm? what i thought is that when US dollars become weak then many people from all around the world will take the chance to trade more with US. so... weak dollars attract more business..? anyone disagree with me?[/QUOTE] If the dollar is too weak it hurts US prestige and it hurts American buying power over seas."

sjerar said: "[QUOTE=Herry;60829]It always up and down, thats the traders make money, if you have automatic trading system and proven the profits.[/QUOTE] Indeed the most profit is in taking advantage of the volatility with an automatic trading systeme."

mginvestor said: "It's going to be difficult for the US dollar to make a comeback due to the impending depression. Good for Canadians but poor for investors. I was watching the local news last week and saw a report on the local housing crisis. A neighbourhood just outside of Seattle was showing that 30% of the houses were in receivership. If you have some disposable income, the next year would be a great time to invest in some real estate. Buy when it's low and sell when it's high. Same principle as the stock market."

lil dickie said: "I dont foresee a 1920s style "Depression" occuring myself."

Airelon said: "[QUOTE=mginvestor;61694]It's going to be difficult for the US dollar to make a comeback due to the impending depression. Good for Canadians but poor for investors. I was watching the local news last week and saw a report on the local housing crisis. A neighbourhood just outside of Seattle was showing that 30% of the houses were in receivership. If you have some disposable income, the next year would be a great time to invest in some real estate. Buy when it's low and sell when it's high. Same principle as the stock market.[/QUOTE] ? ? ? The weak dollar is KILLING the poor Canadian economy. The Canadian economy is based off selling to their commodities, and to the U.S. Canada got screwed off their dollar bumping above the USD."

lil dickie said: "I can only imagine how bad Canadian tourism and retail are hurting by now."

xtreme balance said: "I'm looking for the dollar to hit a low of 65 before making its move back up. I think the fed rates will hit 2.00, maybe 1.75. Any lower than 1.50 and we may see a US dollar hit 60 Good Luck, Scott"

newinvestor123 said: "It will come back eventually, but I'm with xtreme - It all depends on where interest rates bottom. I'd look for a bounce later this year or early 2009. Maybe."

ratAphooey said: "What goes down must go up. Or must it?"

AlfredSokol said: "It is always darkest before the dawn."

ratAphooey said: "[QUOTE=AlfredSokol;65282]It is always darkest before the dawn.[/QUOTE] It has been dark for awhile now."

AlfredSokol said: "The dollar has been getting its ass kicked for so long people are used to it. Just when people think it can never get better, it probably will for the old Greenback."

mattbatson said: "[QUOTE=xtreme balance;64737]I'm looking for the dollar to hit a low of 65 before making its move back up. I think the fed rates will hit 2.00, maybe 1.75. Any lower than 1.50 and we may see a US dollar hit 60 Good Luck, Scott[/QUOTE] scuse my ignorance, what does 60 or 65 mean with relation to the dollar?"

chahinemm said: "according to market analysis the dollar is supposed to be going down further to 1.6 to 1.7 vs the eur. do i think it will happen. too many questions that i dont have the answer for. chahinemm"

AlfredSokol said: "Time will tell. If the US economy rebounds strong, I think it puts pressure on shorts to cover. People are hunting for any good sign of economic news."

pranith said: "Well US $ is going to bounce back soon as it was in the past. Just wait for some time and see the dollar bouncing back."