Trends in FX
What Happens to Currencies If the 10 Year Bond Goes to 6%? |
With Total US consumer credit approaching at 2 Trillion dollars and US mortgage debt exceeding 4 Trillion dollars, many analysts are concerned about the impact of rising rates on the growth of US economy. Most troubling of all is the fact that US interest rates are near record lows, so even a small increase in rates could have a large impact on the cost of debt service. (A 1% hike on a 10% loan only increases costs by approximately 1/10th whereas 1% jump on a 2% loan increases costs by fully one half). In the past two years, a rise in bonds yields, categorized by sharp declines in bond prices presaged large declines in the USD with uncanny accuracy. If 10 Year bond yields rise to 6% the effect in the USD is likely to be negative as trader's concerns about US economic growth will resurface.
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 What happens to currencies if oil goes to $60?
- The Canadian Dollar will rise
- The Canadian Dollar will fall
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What happens to currencies if Gold goes to $500?
- The Swiss Franc will rise
- The Swiss Franc will fall
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What happens to currencies if the stock market falls 10%?
- The US Dollar will rise
- The US Dollar will fall
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What happens to currencies if social security get privatized?
- The US Dollar will rise
- The US Dollar will fall
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What happens to currencies if China Revalues?
- The Yen will rise
- The Yen will fall
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