Dollar loses ground against euro

[gaelen]

http://news.bbc.co.uk/1/hi/business/6179552.stm

The dollar has plunged to its lowest level against the euro since April 2005 amid concerns for the US economy.

The euro surged to $1.3086 against the dollar, with many other currencies following suit.

Sterling rose almost 1% to $1.93, the yen hit a two-month high and Russia's rouble rose to a seven-year high.

Analysts have voiced concerns about the US economy after the White House downgraded its growth forecasts amid a sharp slowdown in the housing market.

Meanwhile, expectations that the European Central Bank is once again about to raise interest rates gave a lift to the euro.

Recent figures showing an unexpected rise in German business sentiment - its seventh quarterly rise in a row - also helped. So did French data showing that business confidence held at five-year highs in November.

However, traders added that thin trade as a result of the US Thanksgiving holiday might have benefited the euro.

"For the time being, the news flow is favouring the euro. If we close above $1.30 today, the key will be if we reject all of this as a Thanksgiving phenomenon or not," said Ian Gunner, head of foreign exchange research at Mellon Bank.

 

[John Chang]

I've never lost money on the euro position I've held since 2003. Averaged in at $1.10 and seems like it never looked back, although it might've taken lots of "smoke breaks" over the years :) I haven't marked my yen position to market, but I doubt I've lost much money there either. I don't trust the Chinese - will never hold any yuan in any significant amount.

Actually, my gold position has given me more grief than the foreign currencies have. I was underwater in much of '05 becuase of gold. Not much fun. Suppose I could've timed it better, but I can't quite see the future as well as I'd like to.

But it's a bull market, you know. Can't lose your position in a bull market, because where would you be then?

Not surprised the dollar is falling, the interesting question isn't that it's falling (it has to, to balance things out) but why is it falling right now? You got me, dunno. Platinum was doing some wierd things a few days ago, usually it lags the other PMs.

Well, next support level for the dollar is 80, and if it busts 80, Prime-Creator-knows-where it's going to end up at.

 

[on_strike_usaexpat]

Silver made an impressive move over the COMEX closed Thanksgiving holiday. If they can't hammer it back down this week, my next year's expat living cost allocation will be covered and then some. Its great surviving off of the margins of the marix and watching the developments from the shadows! :)

 

[John Chang]

Silver made an impressive move over the COMEX closed Thanksgiving holiday. If they can't hammer it back down this week, my next year's expat living cost allocation will be covered and then some. Its great surviving off of the margins of the marix and watching the developments from the shadows! :)

Oh I'm sure they're going to try. They certainly will try. What's involved with living in Latin America? The way my positions are going, I think that kind of lifestyle might become practical for me too.

 

[on_strike_usaexpat]

Proper mindset and frugal living goes much farther than most North Americans realize here in the CONOSUR.