The Dollar Carry Trade - Dollar Danger Zones

manhattan

http://www.youtube.com/watch?v=wxPQTa1JhBQ&feature=related

This video explains what is going on quite well.

yaobooyao

Very educational information.  Bernanke and all FED guys need to go learn it!

Thanks.

manhattan

the determinants of a country's exchange rate are below. What factors have been changed so far to cause dollar reversal? is it because the tax credit for home buyers will come to end and fed's bond buying program will come to end soon too which is a sign of tightening of money supply and unemployment is still very high, which contribute to lowering inflation expectation, that's why cause dollar going up, which causes carry trade unwind, and cause short squeeze..and dollar more up...? the million dollar question is how high dollar can go up to?

i, level of exports
ii, level of imports
iii, prices of imports and exports
iv, thehe elasticity of demand for imports
v, Rate of inflation
vi, rate of interest

manhattan

Bill Gross says dollar will keep depreciating...

http://www.cnbc.com/id/33504871