Forex Taking A Wait And See Approach

Quote from Bitstream:

I know he's still keeping dollar short positions because his view on the currency has never changed (budget, trade deficit) and his trade act as a hedge to his current investments at HB.
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Do you know if Warren Buffet is diversified between all of the USD crosses. If so, does he hold the same percentage for each one?
 
Quote from sKaLpZ:

we had a good little recovery in the dollar (from 1.2589 to 1.2408 EUR/USD).

though it appears now the market is taking a wait and see approach.

- waiting to see what will happen with oil prices.

- with the fallout from Katrina.

- with interest rates.

anyone concur? can anyone add to this list?
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I think that the Wait and See approach might be over as early as tomorrow and that the US Dollar Index will soon go from 87 to 90.
- Oil prices seem to be heading towards $60, which will help stocks.
- Katrina fears are easing, as the stock market has shown.
- For the past 5 weeks, it became less and less likely that the Fed would adopt a more accommodative stance any time soon.

What I would like to add to the list is:
- The FX market is focusing on growth more than interest rates and in that regard, Europe is still disappointing.
- Since July 21st, the dollar and oil have been going in opposite directions, indicating that the main argument for buying US dollar, which is economic growth in the US, was loosing support because of oil prices surging. The US depends more than Europe on growth to attract foreign capital because of it's low saving rate and it's huge current account deficit.
 
Quote from steveosborne:

I think that the Wait and See approach might be over as early as tomorrow and that the US Dollar Index will soon go from 87 to 90.
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gotta disagree. dollar index looking lower. we're in a downtrend now. it's moving down, trade down.
 
I am looking to buy the Euro...

Though it is only one contract, I am long at 1.2390 with the Euro futures..
 
My data indicates that the positive sentiment that was building up for the US dollar has drastically changed today because of renewed uncertainties caused by increasing oil prices.

I'm not bullish on the dollar anymore.
 
Quote from The Kin:

The dollar is too strong again IMO.
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USD has fallen significantly since this post. Anyone have any predictions on when it will hit a bottom?
 
Quote from The Kin:

USD has fallen significantly since this post. Anyone have any predictions on when it will hit a bottom?
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It will hit bottom when all the weak longs are squeezed out.
 
Quote from The Kin:

Anyone have any predictions on when it will hit a bottom?
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The bottom seems to be far. Strong growth is the only fundamental variable supporting the US dollar and if oil is already bouncing back before reaching 60-61, markets will discount additional uncertainties about growth in the US. The trend for stocks seems to be turning from flat to slightly negative and bonds seem to be slightly oversold again.
 
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