It seems like it will be a tall order for the Euro to recover after the recent currency dislocations. There have been huge moves in the last month alone. I remember many business leaders in Europe calling for rate reductions. The unemployment and GDP numbers will call this. It will be interesting to see who is right.
The dollar will continue to rally. The ECB's decision to be hawkish will cause further unemployment problems in Europe and further weakening of their currencies .
Thanks Kathy for the post. Good insights. I wonder how the EURO would be playing right now if the European Central Bank would have lowered their rates and not taken such as hard stance on defending the EURO?
Yes our economy is in bad shape but it appears on the surface that the FED may have got it right. Time will tell......
PS
My ISE currency options have been doing wonderful.
I wonder if the dollar would have rallied as much without the oil drop vs the weakening economies of Europe and Asia?
This will be interesting to see how this plays out and if the dollar can sustain itself. It just seems anytime we get jubilation over falling commodities they just go right back up again.
I hope your right. My purchasing power hasn't been so resilient. A strong middle class is the key to strong growth. Right now the middle class is really taking a hit. I don't see anything improving with the lousy job numbers being posted each month.
I agree that it is only a matter of time before the Euro takes a hit and wont be so attractive.
Another Record Oil Surge Leans on Stocks and Dollar [View article]
If the ECB raises rates next week there will be no place safe to hide. It will cause a worldwide recession and a cascading waterfall event over time in all the markets.
The ECB Remains Hawkish [View article]
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Five Forces Driving the Euro Down [View article]
Yes our economy is in bad shape but it appears on the surface that the FED may have got it right. Time will tell......
PS
My ISE currency options have been doing wonderful.
Friday Was a Dollar Day [View article]
This will be interesting to see how this plays out and if the dollar can sustain itself. It just seems anytime we get jubilation over falling commodities they just go right back up again.
Has the Dollar Bottomed? [View article]
I agree that it is only a matter of time before the Euro takes a hit and wont be so attractive.
Another Record Oil Surge Leans on Stocks and Dollar [View article]