By Gareth Soloway on October 22nd, 2010 11:32am Eastern Time
The much anticipated G20 meeting will be held this weekend. The main topics will be trade and currencies. The U.S. has been hammering China on letting the Yuan float against the U.S. Dollar. They have called China and other countries currency manipulators. This term used by the U.S. has now become somewhat of a joke to the rest of the world. The pot calling the kettle black would be a solid analogy to what the U.S. is doing to China. China may manipulate their currency to keep it in line with the U.S. Dollar, but the U.S. has become the biggest currency manipulator now with their weak Dollar policy. The Dollar has taken a nose dive since mid year and calls by the U.S. for other countries to stop manipulating their currencies are now laughed at.
With the big G20 meeting this weekend, the markets are in hover mode. The SPDR S&P 500 ETF (NYSE:SPY) are trading at $118.27, +0.14 (+0.12%). The markets will most likely continue to trade flat to positive today on extremely light volume ahead of this meeting. The Dollar is also holding around the flat line. Chances are, the manipulating kings, the Federal Reserve would not crush the Dollar ahead of the G20 meeting. That would only throw fuel on the fire of other countries in regards to the U.S. and their Dollar policy. The PowerShares DB US Dollar Index Bullish (NYSE:UUP) is trading at $22.49, +0.02 (+0.09%).
The G20 meeting is expected to have little results other than arguing. However, traders are sitting on the sidelines until after the meeting to be safe. To gain more insight, analysis, guidance and swing trades, join the Research Center.
Gareth Soloway
Chief Market Strategist
www.InTheMoneyStocks.com
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