Is it now a good time to start dumping the US dollar? Although it's the primary dollar security, it may be wise to reserve other currencies.
Quoting the US Dollar against other major pairs shows signs of weakness with the USD dollar. Major pairs including the GBPUSD, USDJPY, USDCAD, and EURUSD have shown significant retracements putting the US Dollar in jeopardy.
With the rise in optimism in the European debt crises, the Euro is rallying from an significant weekly low. With that being said, it is possible to see a recovery in the Euro and the Euro Zone. Based on 13 analytics, the overall sentiment is a 72% buy.
Along with this pair, the USDJPY is also showing some significant rallying. Since mid March of this year, the USD has been steadily grown weaker against the Yen with a current market sentiment of 80% sell.
The USDCAD is also showing some very disturbing figures, a downward trend since the March of 2009. Current market sentiment shows a 100% sell. Speaking on a historic point in time, it's showing the CAD at an all time high, breaking past the previous high in 1995.
Finally, the Great Britain Pound experienced some very rapid growth since early August of this year. Current market sentiment for the GBP is an 88% buy over the US Dollar.
With the major pairs significantly performing better than any historic place in time, is it time to start getting rid of the US Dollar? Other currencies may be more your while, especially in the near future. Take the Canadian Dollar for example. Canada is currently one of the largest exporters of oil, which has a significant impact on the economy and the CAD. Furthermore, if the 1% interest rate were to rise, this would cause another great rise in price for the CAD, just one more reason to start holding onto it.