Spread Betting Solutions

The Euro continues to climb as the Dollar continues to weaken. This market movement is mirrored almost across the board as every other asset class continues to strengthen. Essentially repeating the trend of 2009.

But what will happen to the Dollar? The Chinese administration probably sees little need to change its economic policy just yet. China does not want to see a floating Yuan for the damage this would do to its huge UD Dollar holdings.

In light of this, the continued use of the Euro, Yen and Swiss Franc as a quasi replacement for the Dollar is unlikely to diminish. While the US persists in its quantitative easing policy, and its more general structural deficits, this state of affaires is unlikely to alter.

Having said that, the American economy is definitely coming out of hibernation far faster than many others. There are a certain number of Federal Reserve governors who are less than happy with Ben Bernanke's dovish approach.

So the market trend is still very US Dollar negative and this may continue. The US administration may play lip-service to a Strong Dollar but it will not be unhappy with a slowly weakening currency for whatever reason.

The numbers coming out of the various agencies are also indicating renewed strength of the US Economy and, if so, we might be closer than many believe to some form of US Dollar strength.

If this is the case, what are the options for the investor? One option would be to sell the US Dollar and then, when the market has turned, speculate on the US Dollar to increase.

One simple way of doing this is via a