Originally Posted by
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What if this EUR increase against the USD was made by the banks in the US, who sold a lot of USD and bought YEN?
After all there is not any way for the feds to decrease the interest rate, because with that they will ruin the whole country's economy. Remember it is about the present, the future is a lot more important.
Fridays sell from the USD I see it as a buble on the stock market. Simply untrue. Next week should go back if futher down where it had been. Meaning strenghtening USD.
On the other hand when the US is going to play at a way to completely destroy its own economy that will weaken the USD, a lot, then the only way out is a warfare. Israely planes are already shot at by syria. Israel threatens Iran of placing her down, which I don't know they will do without US help. Truly even the US will have to fight with a plus big lot against Iran. On the other hand if this war happens, it'll be a one involving nations and all continents. I suggest, that most of us who make money from Forex, look for something else on the market to earn money, cause I don't think Forex will be tradeble for besides banks .
Alright, it was a joke, so don't get carried away nonetheless.
But I have a feeling that it was not the ECB who travelled against the USD on Friday. But instead it happened from within the united states. Banks have problems to correct, and these problems can be repaired only with lots of money. The Fed can't correct this issue for them, as with a rate cut would be only momentary. Apart from with a rate cut inventory could fall thousands of things because global investors would have no interest in keeping or investing their money in here. And that would bring the US into recession, big time. Right now the market will go quite bad until one of the banks pups upward as went to bankruptcy.
But hey I am not an economist. I might be giberish here.
Regards...