FXST: Bulls go hunting for undervalued gold and resilient pound
Moving closer to the summer holidays and rising temperatures, one should pay closer attention to market developments and hidden, hot investment opportunities. While uncertainty in certain areas of the currency markets is looming, repositioning one’s investments is increasingly becoming a confusing and challenging task.
The Euro has been in the eye of the Greek storm for a prolonged period on the one hand, and will most likely remain vulnerable for the rest of this year, while the US Dollar on the other hand remains trapped in a neutral territory waiting for a clearer interest rate hike signal by the US Federal Reserve, with a 50 / 50 change of such an event happening in September 2015.
US Dollar rally stalling due to the negative impact of a strong US Dollar weighing on US company earnings and economic growth
Even though the US Economy has grown as result of the Federal Reserve’s quantitative easing program which ended eight months ago, coupled with a low interest rate environment, the increasing strength of the dollar from mid-2014 to the end of the first quarter of 2015 has taken a toll on the growth of the economy over the past six months. Meanwhile, the UK economy has been growing at a lower but steadier pace.