Start your Binary Trading income NOW!!!

Sponsored by Nuffnang.com

Thursday, July 21, 2011

FX Concepts’ Taylor Predicts Risk Rally Before Recession Worse Than 2008’s

European leaders’ efforts to calm the region’s debt crisis will probably pave the way for a rally in higher-yielding currencies before a recession that’s worse than 2008 starts to bite, according to FX Concepts LLC.

Policy makers “are going to kick the can further down the road” at a summit aimed at ending the debt crisis tomorrow, chairman and founder John Taylor, whose firm manages $8 billion, said today in an interview in London. “It looks like we’re going to have a sort of risk rally,” which will lift commodity prices, supporting the Australian and Canadian dollars, he said. Gold may reach $1,900 an ounce by October, Taylor said.

Euro-area leaders are preparing for their second meeting in a month as they strive to resolve a crisis that pushed the 17- member currency to $1.3837 last week, the lowest level since March. Officials are considering steps previously rejected by Germany, including the use of precautionary credit lines, to prevent the crisis spreading, a person close to the talks said.

While FX Concepts is “back in” so-called carry trades, where higher-yielding assets are bought against lower-yielding currencies, the time frame for the trade is “pretty short” because of a looming recession, which will boost the dollar, Taylor said.

No comments: