Dollar Batters Euro
Dec 1st, 2008 | By Doug Casey | Category: Financial NewsIn the currency market, the dollar was sharply higher against the euro. Late Friday, the euro was trading at $1.2874 vs. $1.3013 on Tuesday.
“For the currency market, the Thanksgiving Day holiday usually leads to low liquidity and thin volumes,” said Kathy Lien, director of currency research at GFT. “Although this should mean range trading for all of the major currencies, watch out for a post Thanksgiving Day breakout.”
The eurozone had a lukewarm response to a European Union proposal for a €200 billion stimulus package that would give the EU’s 27 nations a “toolbox” of measures that could be tailored to individual economies.
Meanwhile, the US economy served up another round of grim numbers.
The Commerce Department reported that sales of new homes fell an estimated 5.3% in October to a seasonally adjusted annual rate of 433,000. That’s the lowest level since 1991, but was slightly better than economists’ expectations.
Separately, Commerce estimated that durable goods orders fell 6.2% in October, the largest decline in two years and worse than projections for a 5% decline.
Commerce also reported Wednesday that consumer spending fell 1% in October, the largest decline since the terrorist attacks of September 2001, but in line with expectations.
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Doug Casey is a contrarian investor, sought-after public speaker and author of several books. His work "Crisis Investing" held the position of # 1 bestseller on the New York Times list for 26 consecutive weeks. Doug's unusual views on the economy - and just about everything else - have gained a huge following in the investment community, and it certainly helps that his stock recommendations of undervalued junior exploration companies have made his subscribers millions. Now in its 27th year, Doug's monthly newsletter, the International Speculator, is one of the most established and esteemed publications on gold, silver and other natural resource investments. Together with the Casey Energy Speculator, it covers a broad range of carefully selected stocks with the very real potential of double- and triple-digit returns within 12 to 24 months.