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What currency is best to buy as a hedge against a possible US dollar devaluation?

admin — Fri, 18 May 2012 18:24:57 +0000

Question by Beer is food: What currency is best to buy as a hedge against a possible US dollar devaluation?
The US public debt is rapidly increasing and will soon put pressure on the US dollar. However the financial crisis is affecting the whole world. Which currency will be the new safe haven when the US dollar collapses?

Best answer:

Answer by Barati
I personally hold physical Canadian currency. There are several reasons for this. The local banks carry it. It is the only currency they will accept because we border Canada (I live in Alaska). During a currency devaluation and economic crisses Alaska is more likely to trade and recieve goods from Canada because they are a producing nation. Alaska is not connected to the US. You must come through Canada so it is wise to hold their currency for travel expenses. Also the US dollar will decline and buying Canadian currency now would be a good hedge for buying Canadian goods in the future. They have gold mining companies. 99% of mining companies are Canadian and listed on the TSX. Canada would be one of only a few countries that could back their currency by gold or silver in the future with ease because of their mining production capacity.

I currently hold 10% of my liquid cash reserves in Canadian currency to hedge against the US dollar. It is a good idea to do so. Banks in the Lower 48 may stock and trade other currency as well but here in Alaska the Canadian dollar is the only one they accept so I hold it. All other currencies. Canada is better positioned but they too are inflating their currency as well.

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The Euro is going down, so which currency should I short trade it against?

admin — Wed, 21 Mar 2012 08:47:09 +0000

Question by Dm: The Euro is going down, so which currency should I short trade it against?

Best answer:

Answer by Ela
I would say to US dollars, as it is accepted every where in the world.

What do you think? Answer below!

How does revaluation of China’s currency to make it stronger against USD help reduce US trade deficit w China?

admin — Sat, 03 Mar 2012 08:46:55 +0000

Question by whocaresaboutmeatall: How does revaluation of China’s currency to make it stronger against USD help reduce US trade deficit w China?

Best answer:

Answer by Just Me
consider 2 countries, country A and B.

when A’s currency rate goes up, B will import less from that country, as it is more costly to buy their currency. At the same time, country A will be able to buy more from country B.

This is why when countries try to reduce their currency rates, while it looks good for tourists from other countries, it is actually not good for other countries, as this will usually bring about an increase in exports for the country who has reduced their currency.

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Q&A: Why don’t all countries peg their currency against the US dollar to boost their exports?

admin — Sat, 03 Mar 2012 04:47:53 +0000

Question by Freezing Temperature: Why don’t all countries peg their currency against the US dollar to boost their exports?
China did it. Why won’t all countries in the world do it to boost their export, cut import, cut trade deficit and attack the US economy at the same time? After all, the US don’t make anything to export anymore, except perhaps planes and weapons.

Best answer:

Answer by God Despises The IRS
Because we’re not the center of the world.

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Q&A: US Dollar Index – Against Which Day Trading Forex Currencies Has The US Dollar Rallied?

admin — Sun, 26 Feb 2012 12:47:03 +0000

Question by Hello: US Dollar Index – Against Which Day Trading Forex Currencies Has The US Dollar Rallied?

Best answer:

Answer by Dave L
Among the day trading forex currencies the US Dollar (USD) has seen gains against the:
- Canadian Dollar (CAD)
- Japanese Yen (JPY)
- Australian Dollar (AUD)

The US Dollar has also gained against the Indian Rupee (INR) and the Russian Rouble (RUB).

The biggest gains as of now have come from a rally against the Japanese currency, so if you’re into trading USD, this is where you should continue to see profits over the short to medium term.

I recommend you look at Pound Sterling (GBP) as well as it’s been a traditionally strong currency. Include it in your forex portfolio and part of your daily trade.

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Which commonly traded currency is the strongest hedge against the US dollar?

admin — Tue, 15 Nov 2011 09:30:01 +0000

Question by SCE2AUX: Which commonly traded currency is the strongest hedge against the US dollar?

Best answer:

Answer by SDD
Personally, I think the Norwegian Krone is, but it’s not heavily traded. In any case you probably want currencies that have a heavy oil/resource/commodity component to them. So you could also look at the Aussie Dollar and the Canadian Dollar, which are more actively traded than the Krone.

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Q&A: What is the best currency to trade against the US dollar?

admin — Wed, 09 Nov 2011 09:29:12 +0000

Question by jackiedottle: What is the best currency to trade against the US dollar?
taking a minimum 12 month view. Does taking a position on a spread of curencies (say canadian $ , JPY and UK pound) sound at all sensible?
Valentino – i dont know, thats why im asking

Best answer:

Answer by ValentinoFly
Do you think that is so easy????

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What is the best currency to trade against the US dollar?

admin — Wed, 09 Nov 2011 09:29:12 +0000

Best answer:

Answer by ValentinoFly
Do you think that is so easy????

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With the financial crisis, whats a good currency to trade against the US dollar? (Either buy or sale)?

admin — Mon, 07 Nov 2011 21:29:12 +0000

Question by Jose L: With the financial crisis, whats a good currency to trade against the US dollar? (Either buy or sale)?
I’m thinking about the forex market and believe it may now be a good time to buy or sale currency pair. What currency pair would you recommend to trade and in what direction (buy/sale?)

Best answer:

Answer by vicky 3
i would say its safe for u to do it in Euro and sterling pounds!! and much safer to go for dinars(kuwaiti)

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Q&A: For the advanced Forex trader: is there a program to position against you.?

admin — Fri, 12 Aug 2011 11:37:52 +0000

Question by Arnold: For the advanced Forex trader: is there a program to position against you.?
There was a time when I used to pay careful attention to news trading , price action, patterns in forex.I made some money and lost more.
Now I am trying to catch up on Fx again and it seems that these days , there is SOMETHING THATS ALWAYS BOTHERED ME – DO BROKERS ALWAYS GAME CLIENTS by virtue of some program that takes an opposite position to what you have taken ? Is this ingrained or this is just another myth ? What seems your exp. in this regard ?
I mean … you can do any zig zag activity on the 1-5 min chart and yet not get noticed in the 1/2 , 1 hr chart …..unless someone pays real close attention as to how the 1/2 ,1+ hrs charts are formed off the 1-5 mins and makes one himself. Does this kind of manipulation ever happen ..? or its just imagination ?
thanks for the clarification..well then who is really a straight through non dealing desk broker.
Everyone claims to be one non dealing desk broker.!!! ..any real ones

Best answer:

Answer by First Place Turtle
You could encounter this type of issue with Dealing Desk brokers, who have been known to do such things as “stop hunt” against your position.

To avoid such issues, go with a Straight-Through-Processing (STP) or Electronic Communication Network (ECN) broker, who do not act as market makers but rather route your order straight to the Interbank network.

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