With turmoil in Europe now appearing to be worse by the day, and even more so than in the United States, the Dollar is rising as the Euro and Sterling plunge new depths. We appear to be on the verge of a downside breakout for the Euro, just as the Pound collapsed several days ago. It is important to keep in mind, however, that the Dollar's relative strength is not due to fundamental improvement, but rather, to the perception that other currencies, and the countries that use them, are even weaker than the United States. Tuesday, February 17, 2009
Dollar Back in Favor As European Currencies Fall
With turmoil in Europe now appearing to be worse by the day, and even more so than in the United States, the Dollar is rising as the Euro and Sterling plunge new depths. We appear to be on the verge of a downside breakout for the Euro, just as the Pound collapsed several days ago. It is important to keep in mind, however, that the Dollar's relative strength is not due to fundamental improvement, but rather, to the perception that other currencies, and the countries that use them, are even weaker than the United States. 
