david02360

Historic Strength for the Dollar

I was recently charged $270 for an overnight short dollar long Euro contract. Normally I receive cash based for this contract. The Fed has lost control over interest rates to such an extent that real dollar rates are higher than European rates. Hence the strength in the dollar. Add that to all the distressed Hedge Funds and Banks needing dollars it is no surprise that it has gained. When will it end, only when the central banks regain control.