http://www.bloomberg.com/news/2014-11-04/fed-rewarding-top-traders-faith-in-u-s-dollar.html
By sparking a dollar rally over the
past week, the Federal Reserve has saved the smart money in the
$5.3 trillion-a-day foreign-exchange market from its first
monthly loss since June.
A Parker Global Strategies LLC index tracking 14 top
currency funds has jumped 1.6 percent since Oct. 28, a day
before U.S. central bankers said they may raise interest rates
sooner than anticipated if the jobs market keeps improving. Both
that measure and the Bloomberg Dollar Spot Index, which rose to
a 5 1/2-year high yesterday, had been poised to end a three-month winning streak until boosted by the Fed’s optimism over
the economy.
“The Fed move has reignited the dollar,” Ian Stannard,
the head of European foreign-exchange strategy at Morgan Stanley
in London, said yesterday by phone. “When you do get setbacks,
a good strategy would be to use those setbacks to build those
positions, certainly if you have a longer-term bullish view for
the dollar in place.”
Large speculators such as hedge funds are well placed to
take advantage of the rally, with more money wagered on a dollar
advance than ever before, data from the Commodity Futures
Trading Commission in Washington show.
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