comment on the market

  1. 22,691 Posts.
    The refusal of the ECB to raise interest rates (their economy won't stand it) means that the Euro has dropped to 1.2756. That has taken the stress off it and enabled it to better compete with the US in third countries as well as in the USA itself.

    The rise of the USD to 85.13 (+0.66) is not really good news for the US, no matter how the spin doctors portray it. Their competitiveness has decreased. The war in Iraq is continuing and Bush has asked for $US 100 mill more. So, unless the US consumption decreases, I can't see much change in the deficits. US Imports could be cheaper.

    I think that Greenspan wanted a stronger dollar as he was worried about the financing of the Current Account Deficit. (Snow, the US secretary wanted a weaker dollar.)

    Gold is 413.1 (-1.30), silver 6.51 and oil is 45.40 (+0.12).

    Wallenwein (Thanks Dub) has written some controversial articles from time to time but can never be ignored:

    The G-7 Effect: Selling into Dollar-Strength

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