To anyone who knows forex market, why is the dollar so weak, other than the interest rates? The EU has a worse economy than us, and has a larger debt? Why has their currency appreciated so much?
a lot of currency speculators have been betting against the euro in the medium to long term, at least that's what the PIMCO guys were railing against yesterday.
Hey, at least we'll be drilling offshore now. He's definitely only doing this for the American people.
This story can not be right. just last week, W and his surrogates said that his Admin supported a strong dollar policy. I blame the liberal media!!!
Not yet. There was an executive ban and a congressional ban. Congress still has to remove the offshore drilling ban, or not renew it in the next funding bill.
The European Central Bank can't lower rates because Europe's labor markets are so incredibly inflexible, which is leading to inflation over there. That has contributed to the rising Euro of late. Believe me, the Europeans aren't thrilled about their rising currency versus the dollar (cripples their exports), unless they're heading to Miami for vacation
quote i just read from a cited expert in an article was that the oil market is more concerned with these huge drops in the Dow than with how the dollar is doing vs. the euro.
I think it was still a terrible move by bernake to lower rates the way he did. He fired all his ammo much to quick.
Well as the article stated the dollar has been on a 5 year downward trend against other major currencies...now, what major event has run concurrently with that downward spiral??? hummmm....how about the war!!! We use ridiculous amounts of capital and resources on this war....and guess where all that output ends up at....IRAQ. We don’t see any returns here in the USA…WE ARE BASICALLY BURNING MONEY…and don’t give me that BS that we are safer today than 5 years ago. The only industries that benefit from this are WAR INDUSTRIES, not consumer industries and ect...
The Euro has not recalculated itself imo this is problem #1 The "world economy" will hurt the greenback in the short term due to little to no labor laws in the developing countries. In the age of 24 hour media everyone is overreacting. Why won't the media report on how biofuels are spiking the cost of food or how off shore drilling done the correct way does little to no damage to the ecosystem
EU economy is not necessarily worse. Also, the EU has held the line on interest rates more than the US and that has strengthened their currency.
http://www.bloomberg.com/apps/news?pid=20601087&sid=aOjfls5jzITE&refer=home I don't think strong euro is good for the EU. It is good if they want to come to US. Output in the 15 nations that share the currency dropped 1.9 percent from the previous month, the biggest decline since December 1992, the European Union's statistics office in Luxembourg said today. From a year earlier, production decreased 0.6 percent, the first annual drop in three years. The euro-area economy probably contracted in the second quarter for the first time since the single currency was set up almost a decade ago, according to economists at Citigroup Inc., JPMorgan Chase & Co. and Barclays Capital. Exports from Germany and France fell in May, while Europe's manufacturing and services industries contracted in June, according to the latest purchasing-managers indexes.
doesn't matter - when rates are as low as they are, moving them doesn't have any real impact anyway. he did them to try to avoid the situation we are in now. eventually he has to raise interest rates - because inflationary pressures will begin to trickle their way in. I'm shocked that we've had such low inflation and low interest rates for so long. Particularlly now with oil and food prices the way they are - must be a credit to productivity or something. in any case, we're in the midst of a perfect storm where a lot of things are hitting us smack in the middle of the face at the same time: 1. our dependence on foreign oil has finally come home to roost. been talked about for years since 1980. 2. not unrelated compltely, our trade deficit and negative current accounts balance is creating global instability and led to low interest rates - which led to a housing bubble.... 3. a massive federal deficit has constrained our gov't ability to increase fiscal spending during a recession 4. failure to regulate mortaged backed securities 5. no regulations to prevent predatory lending practices
