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Sunday, December 9, 2007

Expecting a bottom in the U.S. Dollar

US Dollar - we have been expecting a bottom formation for some time and the EURO looked topping.

RTT News wrote, "With the global central banks abandoning their bias towards higher rates and starting to cut rates, the dollar may begin to recover from the abysmal depth it has sunk to.

This past week, both the Bank of Canada and the Bank of England lowered their respective benchmark interest rates. Lower interest rates in the rest of the world will make the major foreign currencies relatively less attractive, thereby weakening them.

Additionally, AG Edwards currency analyst Patrick Fearon believes that the dollar is low enough that it could prompt foreign officials to mount a coordinated effort to support the greenback."

A stronger dollar is not so good for U.S. companies that export, but is better of the U.S. consumer who buys product from overseas or travels abroad.

A strong dollar would also help the broader U.S. stock market.

Again, we reiterate: "NOW is the time for holders of strong foreign currencies to be buying California property!

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