Friday, September 28, 2007 12:18:00 PM
$USD is trading at 77.95 at the moment.
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$USD daily is showing positive divergence at LT support; however, weekly price action is weak - targeting to 76.
http://investorshub.advfn.com/boards/read_msg.asp?message_id=23237939
http://investorshub.advfn.com/boards/read_msg.asp?message_id=23044738
SPX & USD
Strengthening Dollar
Advantages
* Consumer sees lower prices on foreign products/services.
* Lower prices on foreign products/services help keep inflation low.
* U.S. consumers benefit when they travel to foreign countries.
* U.S. investors can purchase foreign stocks/bonds at "lower" prices.
Disadvantages
* U.S. firms find it harder to compete in foreign markets.
* U.S. firms must compete with lower priced foreign goods.
* Foreign tourists find it more expensive to visit U.S.
* More difficult for foreign investors to provide capital to U.S. in times of heavy U.S. borrowing.
Weakening Dollar
Advantages
* U.S. firms find it easier to sell goods in foreign markets.
* U.S. firms find less competitive pressure to keep prices low.
* More foreign tourists can afford to visit the U.S.
* U.S. capital markets become more attractive to foreign investors.
Disadvantages
* Consumers face higher prices on foreign products/services.
* Higher prices on foreign products contribute to higher cost-of-living.
* U.S. consumers find traveling abroad more costly.
* Harder for U.S. firms and investors to expand into foreign markets.
~~~
$USD daily is showing positive divergence at LT support; however, weekly price action is weak - targeting to 76.
http://investorshub.advfn.com/boards/read_msg.asp?message_id=23237939
http://investorshub.advfn.com/boards/read_msg.asp?message_id=23044738
SPX & USD
Strengthening Dollar
Advantages
* Consumer sees lower prices on foreign products/services.
* Lower prices on foreign products/services help keep inflation low.
* U.S. consumers benefit when they travel to foreign countries.
* U.S. investors can purchase foreign stocks/bonds at "lower" prices.
Disadvantages
* U.S. firms find it harder to compete in foreign markets.
* U.S. firms must compete with lower priced foreign goods.
* Foreign tourists find it more expensive to visit U.S.
* More difficult for foreign investors to provide capital to U.S. in times of heavy U.S. borrowing.
Weakening Dollar
Advantages
* U.S. firms find it easier to sell goods in foreign markets.
* U.S. firms find less competitive pressure to keep prices low.
* More foreign tourists can afford to visit the U.S.
* U.S. capital markets become more attractive to foreign investors.
Disadvantages
* Consumers face higher prices on foreign products/services.
* Higher prices on foreign products contribute to higher cost-of-living.
* U.S. consumers find traveling abroad more costly.
* Harder for U.S. firms and investors to expand into foreign markets.
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