Arrowhead
You can do a lot better than bank deposits. It doesn’t matter what the currency, that would be the last place I would put the bulk of my money. In addition, to get a decent rate most want you to lock your money away with them for more than 12 months. Are you confident that the Euro, AUD and NZD will still be appreciating against the USD in 12 months? Have a look for example at what has happened with the NZD to the HKD/USD in the last 3.5 months alone. It has declined in value by 7.3%. Here’s some interesting facts about what has happened to the five high yielding currencies (AUD, NZD, GBP, CAD and EUR) I track on and have been trading in, in the last three years:
AUD
From the 29-3-06 to 7-6-08 it has appreciated 37.28% to the HKD/USD.
NZD
From the 28-6-06 to 27-2-08 it has appreciated 37.83% to the HKD/USD.
From the 27-2-08 to 11-6-08 it has depreciated 7.3% to the HKD/USD.
GBP
From the 28-11-05 to 8-11-07 it has appreciated 25.18% to the HKD/USD.
From the 8-11-07 to 11-6-08 it has depreciated 6.19% to the HKD/USD.
CAD
From the 13-6-05 to 7-11-07 it has appreciated 36.7% to the HKD/USD.
From the 7-11-07 to 11-6-08 it has depreciated 9.5% to the HKD/USD.
EUR
From the 16-11-05 to 22-4-08 it has appreciated 37.63% to the HKD/USD.
From the 22-4-08 to 11-6-08 it has depreciated 2.5% to the HKD/USD.
With the exception of the AUD it is quite clear to me that the HKD/USD has probably turned the corner with the rest. I’m not going to tell you what to do with your money but these numbers speak for themselves don’t you think?