Intraday Analysis from FXMarketAlerts.com
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More upside for EUR, GBP, AUD, including Gold on reserves, and downside for USD? FT article by Fed Watcher Krishna Guha : The world should try to mitigate flaws in the dollar based global monetary system by reducing demand for dollar reserves and exploring alternative reserve assets, a group of economists from the IMF said on Wed. They said the crisis had “brought to the fore” long-standing concerns about a system based on a single core currency issued by one country.They said reducing demand for dollar reserves would be only part of the solution. The world would also have to examine alternatives to the USD as the dominant reserve asset. This could include a move to a system in which the USD shared its leading role with a few other currencies such as EUR and possibly China’s renminbi. On FX, could see more Asian, M.E.,Russian, S American sovereign accounts buying EUR, GBP, Gold for reserves. EUR at 1.5002/03, bids 1.4950-60.WL
