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TFC Commodity Trading Forum

Re: U.S.$ Index/backtest results/JohnyAlpha

Well 6E (Euro) is the largest part of DX and trades exactly inverse to DX if that helps. The Swiss Franc pegged its currency to the Euro so that doesn't help much. The Aussie Dollar is a 'risk on' currency and tied to China's economy. And there is always some announcement about China slowing down and then China speeding up again story that affects the Aussie Dollar. The Canadian dollar seems to be holding above par for a variety of reasons but is trading sideways now for some time. The big change should be with the Japanese Yen and their change in policy that should see the Yen continue to fall so they can be competitive with their exports amoung other reasons. That has already occurred somewhat already and should pull back as it is very oversold presently. They are all realtive to each other. And all you need for one to change signficantly is a comment from some high official on policy which may or not be valid. A rising currency kills exports so bad mouthing your currency can help your manufacturing jobs. So what's real and what's b.s. is always questionable. Not sure how you would put this together but those are my thoughts on the currencies. I don't thing they would be a good choice overall due to these factors. Something that consistently trends would be the best bet I would think.