Dollar predictions

[sunoco69]

With the Fed shut down happening I wondered what people thought on the the dollar.

Is it likely to go up or down against the £?

[pilbeam_mp62]

sunoco69 said:

With the Fed shut down happening I wondered what people thought on the the dollar.

Is it likely to go up or down against the £?

It is the US Government that is "shut down" at the moment, rather than the FED....the key date is October 17th when the US Treasury says that their debt capacity will run out. However, there is a difference of opinion on this, and other research suggests that they have a couple more weeks after that - There are large Social Security payments due at the beginning of November.

Equity markets and the Dollar have been under pressure for the last couple of weeks, which allowed sterling to rally to just over 1.6200 against the $. The market had got itself a bit long of sterling up there and we have seen a sharp retracement over the last week or so (currently 1.5950)

Bottom line - I think the dollar will remain slightly under pressure until the US situation is resolved - hopefully with the government going back to work. At that point we may see some dollar buying, but the real rally in the dollar will not come until "tapering" starts in the US, which is now not likely to occur till December at the earliest. These are my personal opinions only.

[sunoco69]

Thanks for the reply.

That is how I see it as well. I will buy my dollars for holiday now then.