The soaring oil prices, is no longer the global fund $refuge, the depreciation of the dollar trend is more clear, and priced in dollars commodities rising momentum still mention.
From the historical point of view of experience, the dollar in global asset plays a “safety island” role.If there is any geopolitical conflicts, or even the occurrence of natural disasters, will in the short term to suppress the market’s risk preference.Now investors will sell risky assets (stocks, commodities and high yield bonds), and buy American national debt, capital inflows to the United States, uplift of the dollar against other currencies, the dollar.
However, in the Middle East, North Africa disturbances, the dollar’s role was given a surprise change.Expected dollar fell more and more investors, hedge funds and foreign exchange traders bet on a fall in the dollar amount of funding a record.This reflects that the dollar has lost the hedge, attractive, and the euro zone will soon raise interest rates.
The latest data show that currencies, traders are betting against the US dollar.Some people will decline attributed to the United States of America’s huge fiscal deficits and rising oil price concerns.Often regarded as hedge fund activity index of the Chicago Stock Exchange (CME) data shows, short dollar positions from the week ending February 22nd of 200564 contracts, soared to 281088 pieces of March 1st.This means, the Chicago Mercantile Exchange, short of dollars in the week ending March 1st an additional $11500000000 to $39000000000, than 2007, record of 36000000000 dollars by 3000000000 dollars.
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