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Dubai Default Will Depress the Oil Prices

The recent news that Dubai suspended the repayment of its $59 billion debt sent shockwaves through the markets. Some shockwaves were expected, others came completely out of the blue.
In the first category there are the news of the spreads widening. In the second enter the appreciation of the yen, completely unexpected. Nobody was thinking that the panic will make the yen become what it was once – a safe haven for the investors. Yet, the yen continues to trade higher and higher.
The main resource of Dubai was the oil. And the government from Dubai has to repay somehow their debts. Even in the case of default, they must repay at least partially those bonds. It means that the Dubai sovereign funds and the Dubai asset owners must pump more oil to sell on the global market. Read More »Dubai Default Will Depress the Oil Prices

US Dollar Poised to Fall

doitinvest.com nice currencies photo / picture

doitinvest.com nice currencies photo / picture

All the reports released this week conspired against the U.S. dollar value. It all started with the release of the highest unemployment rates since you and I probably were not even born and the things were much worse (or at least this is how the kids think about the year 1949, when there were no playstations and mobile phones around).Read More »US Dollar Poised to Fall