The stumbling US housing market could cause a further weakening of the dollar as it hit a three-week low against the euro, according to recent reports.
With the dollar currently trading at $1.3443 against the euro, there has also been speculation that it might yet break the $2 to sterling barrier once again, depending on US federal and British interest rate changes and reinforcing the need to get the best exchange rates.
This has also cut the yield premium for US Treasuries, Bloomberg news agency reported.
Sue Trinh, a foreign exchange specialist with RBC Capital Markets in Sydney, told Bloomberg: "The dollar's yield advantage has waned. The market is vulnerable to weaker housing data and that will weigh on the currency."
Meanwhile, the Wall Street Journal has reported that the dollar could gain against the yen, partially due to the prospect of higher interest rates in Japan.
Last week, the yen weakened significantly against the euro, with 1,000 yen currently trading at 6.010254 euros.
Recently there has been a considerable influx of foreign investment into the US property market, with many keen to capitalise on what are very low current property prices; this is especially the case in the more popular holiday destinations such as the “US Sunshine State” of Florida. There has been a significant rise in the number of British buyers in Florida over the past few weeks, for not only can a Brit benefit by having a wide selection of “low priced” homes to choose from, they can also take full advantage of their sterling buying power and with the current prospect of an even more favourable exchange rate peaking, Florida property sales to Brits seem likely to soar skywards over the next few weeks!
To obtain a free DVD “The definitive guide to buying in Florida” call the UK number 08456 444 747 or e mail us with any questions about this subject at enquiries@countrysideinternational.com
www.countrysideinternational.com
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With the dollar currently trading at $1.3443 against the euro, there has also been speculation that it might yet break the $2 to sterling barrier once again, depending on US federal and British interest rate changes and reinforcing the need to get the best exchange rates.
This has also cut the yield premium for US Treasuries, Bloomberg news agency reported.
Sue Trinh, a foreign exchange specialist with RBC Capital Markets in Sydney, told Bloomberg: "The dollar's yield advantage has waned. The market is vulnerable to weaker housing data and that will weigh on the currency."
Meanwhile, the Wall Street Journal has reported that the dollar could gain against the yen, partially due to the prospect of higher interest rates in Japan.
Last week, the yen weakened significantly against the euro, with 1,000 yen currently trading at 6.010254 euros.
Recently there has been a considerable influx of foreign investment into the US property market, with many keen to capitalise on what are very low current property prices; this is especially the case in the more popular holiday destinations such as the “US Sunshine State” of Florida. There has been a significant rise in the number of British buyers in Florida over the past few weeks, for not only can a Brit benefit by having a wide selection of “low priced” homes to choose from, they can also take full advantage of their sterling buying power and with the current prospect of an even more favourable exchange rate peaking, Florida property sales to Brits seem likely to soar skywards over the next few weeks!
To obtain a free DVD “The definitive guide to buying in Florida” call the UK number 08456 444 747 or e mail us with any questions about this subject at enquiries@countrysideinternational.com
www.countrysideinternational.com
Subscribe to Countryside International Newsletters by Email
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