Multi Currency Flash

by | Mar 21, 2006 | Multi Currency Investing

Multi currency flashes were sent this morning that shared a warning of Jyske Bank’s concern that the US dollar may come under pressure.

There are two fronts that are struggling for the upper hand of the EUR/USD rate. One will hold that
nothing has changed, so long as 123 stands firm. Others maintain that focus has already changed, and that passing 123 is a question of time.
Investors should be prepared to learn at all times. If the EUR/USD passes below 116 dollars per euro, the dollar could rise all the way to 110 in the short term. If this is the case the dollar long portfolio will most likely prosper.
But if as feared by Jyske Bank the 123 dollars per euro rate is strongly breached, the next stop for the rate may be 126 or perhaps even 128 dollars per euro. This would favor the dollar short portfolio.
On the other hand, if 123 remains firm, the bank expects to revert to range trading between 116.40 and 123.00. The hedge portfolio will have the advantage in this scenario.
In the meantime the Emerging Asian Portfolio and Emerging Market Portfolio just keep rising.
The Asian Portfolio has continued to rise from the +76.45% October 21, 2006 to March 14, 2006 position to a 80.10% gain as of March 21, 2006.
The other portfolios have performed as below .
The Emerging Market portfolio is up from 43.04% to 52.67%.
The Dollar Long Portfolio dropped from + 4.97% to + 3.95%
The Dollar Hedge Portfolio dropped from + 3.44% to + 3.22%
The Dollar Short Portfolio rose from -0.97% to +1.95%
I am not recommending any changes in the portfolios at this time.

See the attached file.