mkhanarian

Dollar and Euro: Different Week, Same Drivers

Hello, what are your thoughts on remarks from the Fed's Stern, when he stated that a rate rise can not wait until a recovery in the housing markets? While I agree that much of movements in the FX market is oil and earnings driven, the speculation on future interest rates is still central as well. While some believe Bernanke will cave to the pangs of inflation and follow the path of his European counterpart, this is not a certainty. What are your thoughts on the spread between the Fed Funds and Eurozone rates?

Cheers
MK