WHEN it comes to economic growth, China has been stealing the limelight in recent years. But India’s economy is also forecast to power ahead in 2010, with the IMF forecasting an annual growth rate of 6.4 per cent. The country’s more liberal environment (compared to China’s) should encourage investors into Indian assets and boost the Indian rupee-US dollar. Currencies Direct is offering Rs45.50.
The US dollar’s fortunes appear to have reversed over recent weeks but there are still some currencies against which the greenback continues to struggle. It might well be worth traders still looking at going long on South African rand-US dollar. Capital Spreads is offering a price of 7.469R-7.484R.
Equally, you could go short on US dollar-yen after a break to the downside. Look for a test of support at ¥91.30. ETX Capital offers a spread of ¥91.75-¥91.77.
But if you have become more positive on the buck, then you could sell Aussie dollar-US dollar. Some analysts predict parity with the buck this year but the commodity currency looks overbought and is at risk if the central bank pauses any rate hikes. FairFX quotes a price of $0.9262.