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currency such as the Swiss Franc, you would click ASK, expecting the U.S. Dollar to
strengthen against the Swiss Franc.
- If you believe that due to instability in the Middle East and in U.S. Financial markets, the
Dollar will continue to weaken, you would click BID, expecting the Swiss Franc to
strengthen against the Dollar.
5) EUR/CHF
The Swiss government uses verbal intervention to weaken the Franc, sending the EUR/CHF higher. If
inflation took off in Germany and France it could drive the EUR/CHF lower.
- If you think the Swiss government wishes to devalue the currency to help exports in
Europe, you would click ASK, expecting the Euro to increase in value against the Swiss
Franc.
- If inflation started taking off in Germany and France, you would click BID expecting the
Swiss Franc to increase in value a devalued Euro.
6) AUD/USD
Rising commodity prices send the AUD/USD higher. Droughts hurt the Australian economy and the
AUD/USD.
- If you think that commodity prices are going to rise dramatically, thus benefiting the
Australian Dollar, you would click ASK, expecting the Australian Dollar to strengthen
against the U.S. Dollar due to Australia’s status as one of the world’s leading commodity
exporters.
- If you believe that Australia will face another drought, hurting the domestic economy,
you would click BID, expecting the U.S. Dollar to strengthen against the Australian Dollar.
7) USD/CAD
Canadian economic underperformance against the U.S sends the USD/CAD higher. Higher interest
rates and rebounding labour market in Canada will help to drive the USD/CAD lower.
- If you think that the U.S. economy is going to rebound while Canadian economy goes
into recession, you would click ASK, expecting the U.S. Dollar to strengthen against the
Canadian Dollar.
- If you believe that the higher yields and rebounding labour market in Canada warrants a
higher valuation for Canadian Dollar against the U.S. Dollar, you would click BID,
expecting the Canadian Dollar to strengthen against the U.S. Dollar.