US Dollar auctions in the wake of recent consumer confidence data have been on the rise. In fact, the US Mint sells commemorative coins, like the gold dollar coin, that are made from gold and platinum. In early August, the US Dollar Index was on its way up after having stayed flat for most of the previous year. The strength of the US Dollar Index is likely tied to the robust US Dollar Reserve Bank buying in the wake of renewed worries about the slowing US economy.
Why does this affect you? Well, if the Reserve Bank continues to increase interest rates, which it has been doing lately, then the “demand side” of the business is going to see a negative impact on your pocketbook. Right now, there are a lot of reasons that might make you look to buy the gold dollar coin. But what do you really need to buy? What’s the best choice? In this article, I will explain how you can make the most out of this precious metal.
The US Dollar Index is currently -0.6% versus a long-term average. This is due to economic weakness in the Europe and Asia – specifically China. As China overtakes the US as the largest economy, the demand for the dollar will increasingly be affected. If you’re holding a US Dollar in your account right now – stop doing so. The days are gone when you can rely on a safe haven like the US Dollar to secure your investments.
There are two types of US Dollar Probes currently on the market. Both of them are priced quite reasonably. And both of them are gaining momentum. But which one should you go for?
The most widely-followed Probe is the Eurodollar. This stands for the Euro against the US Dollar. Its price is updated automatically and is displayed on the OTCBB every day. While it trades very well, it has a slightly higher standard deviation – which means that it could experience small price swings and could be very volatile.
The next in line is the Swiss Franc. The EUR/USD is very similar to the Eurodollar but trades more aggressively. It also follows the US Dollar Index. So the EUR/USD is similar to the Euro and the Swiss Franc is similar to the Swiss Franc. However, the Swiss Franc has significantly less volatility and trails the Euro on a daily basis.
The third probe, which is the most risky, is the UK Dollar Index. The British Pound is similar to the Euro and the Swiss Franc. It trades more aggressively than any other in the trading pairs. So this is not the best trade to enter.
However, if you have the technical skills you can trade these markets using the Macros that are available. They basically take the previous price action and predict where it will go next. So there are many cases when you make money by simply following a price movement that you previously determined to be correct. So the US Dollar is not far behind in this battle, but those who are new to this market may want to hold off on any further activity until they get more familiar with these macro tools.