DXY is down with a price to earnings ratio of -5% and is not making the same impact as the “big dogs” of the stock market have recently on the market. In the past, we have seen a big hit on some companies like Cisco, and I am sure there will be a similar event with DXY. However, it could be that there is a pattern that we are seeing here in relation to some of the other large companies that have experienced a fall in the market in recent months.
The stock that most people are talking about now is that of DXY. It is very interesting that this stock has been able to remain relatively flat over the last two weeks with a dip in its price. This could be due to several things, including a possible break out from a correction, or the fact that many investors are simply trying to get into a stock that has experienced the strongest upward trend in a long time.
On top of the USD Index Outlook, we are going to take a look at the outlook for some other currencies as well. The most likely currency that is affected in any way by the DXY recovery will likely be the Euro.
Many European banks that have been hurt by the recent credit crunch are looking to the Euro as a way to help them stay afloat and gain back some of their credibility. If they are able to get some of their loans backed up in Euros, then they will be more confident and be more willing to be flexible when it comes to lending money. This is good news for the Euro and could possibly mean a rise in the Euro over time.
There are some other things that the Euro could do to see an increase in the value of the dollar. For example, if the Euro were to experience a fall of more than 10% against the US Dollar, then this would cause a significant change in the amount of money that American businesses are able to borrow in the United States. That could mean a lower dollar for imported goods and services, which would result in an overall decline in the market value of the dollar. which would make the Euro even more valuable than before the downturn.
Some investors believe that the Euro may not stay in a correction phase and that it is going to reverse its recent decline and climb back up. but for the moment, the outlook for the Euro appears to be holding steady. but many experts will still be watching to see what the Federal Reserve does next.
One of the other big points that we are going to look at in relation to the DXY is whether or not there is a reversal of the trend that is starting to happen. The last time the Euro was able to hold its value against the US Dollar, we saw a huge crash in the market.
Over the last three years the Euro has done just fine during times of economic uncertainty, and is now in a position to withstand some of the US economic turmoil. If it can hold its value, then there is an opportunity that the Euro will hold its value as the US economy begins to recover and we begin to see some of the US jobs data that we have been waiting for.
However, there are a lot of analysts who believe that the Euro may not hold its value and could actually begin to lose its value as soon as next month. The main reason for this is because most European banks, including the big German banks, have been unable to get enough money from the Federal Reserve to continue to make interest payments on their accounts. This means that the Fed has been unable to make any sort of effective interest rate increase to counteract the effect that a lower interest rate would have on the value of the Euro.
There are a lot of experts who believe that the Euro is not going to fall to all of the same levels and it could still remain near the level that it currently stands at, but it could start to decline over time. and fall to the level that is closer to that which the US dollar was at when it began its recent recovery.
However, there are a lot of Forex professionals out there that believe that the Euro is just not going to start dropping until the US economy begins to recover completely and the Federal Reserve makes some kind of a major announcement. For the moment, we are still waiting for the Federal Reserve to announce whether or not it will be raising interest rates, but many people believe that this is just going to be a matter of weeks away.