Trading Forex in Baskets to diversify trading risk for both, speculative trading or hedging Forex risk by 
This time a more fundamental view on the US Dollar.
Foreign Governments dumping US Assets during November last years according the TIC (Treasury International Capital).
Net foreign purchases of long-term US securities were negative $ 56 billion.
Of this net purchases by private foreign investors were negative $ 18.9 billion and net purchases by foreign official institutions were negative $ 37.1 billion !
This is the third time in four months that foreign governments and institutions sold US Long Term securities, these are defined as treasury bonds, agency bonds, corporate bonds and equities.
Foreign entities dumped $ 92,6 billion of US long term securities in the last two months and foreign governments sold US long term assets in everyone of the last 4 months for a combined $ 69,3 billion.
In become clear that foreign goverments may not be intrested in continue to finance US deficits.
Watch these number carefully if you have Dollar assets.
Hi Ron, your previous post about hedging us/asset ect . can you explain in detail some more about this concept.
Regards,
Sean
Hi Ron, I dont understand the gap between the red and blue line, I know what it represents but how do you know which one is losing and why?
Hi Sean, the chart shows USO ETF in US Dollar (red) and in EURO (blue) and simply. At the bottom of the chart you see the EUR/USD rate in order to create the USO price in EUR. Therefore it’s important for non-US Dollar traders to hedge also the EUR/USD when they trade USO ETF in US Dollars on US exchanges. The chart can be in realtime. Regards, Ron
Hi Ron, can you give a trade example with this ?
Hi Sean, the most easy way to see the signal is USO in EUR minus USO in USD so you get an oscillator on which you add a moving average. I will make another example in my next post later tonight. Regards, Ron.