World Forex - “Sun Worldwide” – (US Dollar Under Pressure)…

May 6, 2009 - PRLog -- Sources close to ‘Sun Worldwide’ suggest that the private fund believes that the resilience of the US dollar may be waning as the twin burdens of large government debt issuance and rallying equities begin to take their toll.

Individuals familiar with analysts at ‘Sun Worldwide’ say that the firm feels that the dollar’s safe-haven status is starting to look shaky as risk appetite among investors returns. The yields on US bonds have been edging steadily upwards as investors demand greater return for lending money to the US government. The rally in equities has seen many investors sell off their bonds in an effort to catch a ride on the fortunes of a new lease of life in the equity market.

“Sun Worldwide”, who advised clients some time ago to avoid buying US Treasuries, believe that gold will still fare well despite the new dynamic in safe-haven trades and expect the precious metal to approach the $1000 per ounce mark again within the next few weeks.

“Sun Worldwide” are also thought to believe that the US government may be forced to raise interest rates sooner than they would like if investors fail to keep purchasing Treasuries.