I think that's a possibility alf... It's quite a conumdrum for the Biden/Fed duo.
Watch the 10 Year Treasury, while correlating it with the USD. The USD should go up because it has a positive interest rate compared to everywhere safe. It's that yield that will appeal to foreign instos and governments; thereby foreign money will pour in; another upward pressure on the USD. However, the USD is on a definite downward trajectory.
A higher Fed rate will make the US debt's interest rate payments almost insurmountable in simply covering JUST the interest payments. Therefore a lower USD exchange rate makes the US debt more palatable to outside buyers, while maintaining a relatively positive yield. (NB: foreign instos must calculate exchange risk versus hedging costs, making a measly return thinner.)
So higher USD means EDE takes more AUD by virtue of the exchange rate. A lower USD lessens EDE's take home pay.
So... I don't know whether it breaks up or down. The poorly detailed forces above paint two different outcomes.
Regardless, the potential extra/new/surprise money for EDE grows. Depending on size it may neutralize any negative forex impact. Conversely, a lower USD will put upside risk on EDE when exchanged to AUD.
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I think that's a possibility alf... It's quite a conumdrum for...
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Last
0.2¢ |
Change
0.000(0.00%) |
Mkt cap ! $8.216M |
Open | High | Low | Value | Volume |
0.2¢ | 0.2¢ | 0.2¢ | $0 | 202 |
Buyers (Bids)
No. | Vol. | Price($) |
---|---|---|
62 | 184286417 | 0.1¢ |
Sellers (Offers)
Price($) | Vol. | No. |
---|---|---|
0.2¢ | 27811700 | 28 |
View Market Depth
No. | Vol. | Price($) |
---|---|---|
62 | 184286417 | 0.001 |
0 | 0 | 0.000 |
0 | 0 | 0.000 |
0 | 0 | 0.000 |
0 | 0 | 0.000 |
Price($) | Vol. | No. |
---|---|---|
0.002 | 27811700 | 28 |
0.003 | 44921223 | 21 |
0.004 | 5941034 | 7 |
0.005 | 4631540 | 3 |
0.006 | 1876383 | 1 |
Last trade - 10.02am 10/09/2024 (20 minute delay) ? |
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EDE (ASX) Chart |