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FX Trading – Growth and inflation? 10 Reasons the Dollar has Bottomed
By Jack Crooks   
January 12, 2010

Here are our 10-reasons why the buck has recently bottomed…try to read these with a straight face. If you can’t, then maybe we are on to something.

1. Credit Crunch Sea Change
US Savings going up; debt sentiment changed

2. Risk Bid Trigger Again…initially
Greece and Dubai

3. Growth – Not as bad as expected; it’s all relative
Non-farm payroll and Mr. US Consumer

4. Carry trade idea history
Fed hikes before BOJ and before ECB

5. US Assets are very cheap
Foreign Direct Investment Flow (currency cycles play that role)

6. Sentiment – Newsletter writers are in apoplectic territory
Everyone hates it and one-way bet

7. Correlation – it has changed
No new low with gold blow off and stock high

8. Technical
Broke its weekly down trend & extremely oversold

9. Euro craters as a currency
Rush to dollar-the world reserve currency punctuated

10. Bill Gross isn’t always right; neither is Jim Rogers*

For more from Jack, visit Black Swan Capital and register for their daily newsletter, Currency Currents.
 
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