Currency trader Axel Merk is shifting from the euro EURUSD to the Australian dollar.
A rate cut may take place in the Eurozone as early as next month so that Trichet’s successor Mario Draghi, who will succeed Trichet this November, won’t have to initiate interest rate reductions as his first move.
Meanwhile, in the U.S.:
Bernanke is raising market expectations of further monetary easing. In our assessment, a key beneficiary of such a move would be the Australian dollar USDAUD.
