CaptBob

Eurozone Still To Be Avoided

Mad: I'll try to explain. 1st it depends who is doing the buying. 2nd most commodities are priced in Dollars which just lost value vs the Euro.

Let's say coffee (retail is a commodity) and Hans, Pierre and Luigi go into their Starbucks and have a Latte on Monday, price 4 Euros.
Tyrone on Times Square goes in and it's $6.

OK Tuesday the Euro goes up 10%. Does Starbucks an American Co. charge Hans and friends in Europe 3.6 Euros and Tyrone $6. Bite your tongue! At Der Starbuken Cafe it stays 4 Euros. and Tyrone will get -(slowly)- moved up to 6.60, probably driving him back to cheap Calif. wine.

Same thing with Oil when a barrel goes up it's in dollars so we get a direct hit. In Euros its less since a Euro buys more dollars with which to buy the oil--Comprenez??