PRLog (Press Release) –
Aug 05, 2009 – “Guardian International”
, the US-based investment brokerage believes that the US dollar has resumed its long-term downtrend as riskier assets including equities and commodities stage a recovery.
Optimistic economic news from the US and around the world has seen investor appetite return in the form of new highs for global stock market indices and commodity prices but “Guardian International” has urged its client base to exercise caution citing the rally in stocks as reaction based on sentiment rather than solid fundamentals.
The dollar fell to 1.44 against the euro and 1.70 against sterling in volatile trading. Analysts at “Guardian International” believe that the huge issues of government debt are beginning to take their toll on the world’s reserve currency and that it is beginning to lose its safe-haven status as investors return to the riskier assets. The analysts, however, believe that markets will find it difficult to sustain the current momentum in the absence of a return to form of consumer spending upon which the US economy is heavily dependent.
They believe that this may prompt a sell-off in equities and a brief reprieve for the greenback in the weeks ahead.
“Guardian International” has been largely skeptical of claims from the US authorities that they want a strong dollar policy since such a situation would damage the country’s export capacity and add to the pressures of servicing its huge national debt. 
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