Thursday, 17 April 2008

US Dollar on its final leg downwards

US Dollar (USD) has hit its all time low last night against the Euro. So, expect more downside for the USD in the near term. However, over the longer term, I believe that the USD is on its final 5th wave down. The 5th wave is the terminal wave for its rally/decline. After this wave is done, I see the USD rebounding strongly.

How would this affect the equities? I believe that the stronger USD would help lift the US market out of its doldrum, even if it is only for a 2-6month period. And if Wall St climbs, regional markets around Asia would also follow suit. I see positive signs for the global equities market in the short 2-6month period.

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