Thanks Sherwin. We really do have to keep objectives on hand. Learning a lot from your posts. Core EUR holdings in low risk bonds. Placed bets on Peso and Aud. Got burnt on AUD, so far so good with the peso (December remittances). Citibank is favoring EUR and AUD next year as outperformers in the context of continued dollar weakness. I think AUD will carry the brunt of unwinding carry trade due to equity volatility.
Bottomline as long as there are a lot of uncertainty AUD will struggle. AUD thrives on a risk taking environment. You know what (I know this is bad) I feel like I don't want to cut my AUD anymore kasi its all psychological eh. I will just think na I had AUD in the first place and not think of it in USD terms. I mean a lot of people are holding USD for the past year and they don't realize that it lost 10% of its value
Yes, I agree. We should not think of it of everything in dollar terms. I had also decided to hold as long as I can earn via interest income or investments through that currency. RMB, though undervalued, is different unless you have a China account because there will be no interest income just like physical gold. However, it is just a matter of time before it becomes fully convertible worldwide.
My short term outlook for EUR/USD is bearish, failure to break short term resistance of 1.4456 and 1.4530 will result of further down move. Short targets will be 1.4250, 1.4119 and 1.3919...
