Tuesday, June 03, 2008

Return of King Dollar?

The chart above shows the one-year forward premium or discount for the USD vs. the British Pound (BP) and the euro, on the first trading of June in 2006, 2007 and 2008 (data available here). Compared to two years ago when the dollar was selling at a one-year forward discount versus both the BP (-0.60%) and the Euro (-2.1%), the dollar is now selling at one-year forward premiums of +2.6% for the BP, and +1.8% for the euro.

Does this signal the return of King Dollar?

1 Comments:

At 6/03/2008 9:18 AM, Blogger Jack McHugh said...

"Does this signal the return of King Dollar?"

Or just a dead-cat bounce?

(Duh, Jack - that's always the question. :rolleyes:)

 

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