New Purchases FXS & FXE

Just a quick note to say that I am adding two of the Currency ETF's to my ISA. I am buying the FXS( Swedish Krona ETF) and the FXE (Euro Currency ETF).

Sweden is performing very well and its economy is strong, I expect that the Swedish Krona will strengthen further as we move into 2007.It will also give me some hedge against the potential of a falling Dollar(which doesnt seem to have happened yet !!-but I think it will).The dollar may confound its critics for the next while as (if you buy in to the conspiracy theories) the Presidential elections may mean that certain factions within the US government do not want their currency falling out of bed and impacting on the economy, in the run up to the Presidential elections.

I am looking at this holding being a longer term one anyway-assuming we do not hit our stop loss.I do not believe however that Krona strength will be dependent on Dollar Weakness anyway.

The second ETF was the FXE-Euro Currency Trust, the euro has pulled back here and we should find support in the mid 128 range if not before, from there I see that as a good launching pad for the euro to hit 133-136 sometime later in the year.

I have placed a stop loss of 5% on each of these as a 5% swing in the currency would be a fairly substantial move.

Best Wishes

Alan

Tags: ETF, Currency ETF, FXE, FXS, Dollar, Krona, Sweden, Euro, ISA

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