Dollar Little Changed Against Euro
Nov 19th, 2008 | By Doug Casey | Category: Financial NewsIn the currency market, the dollar edged higher against the euro. Late Tuesday, the euro was trading at $1.2618 vs. $1.2643 on Monday.
The day’s big number was the Labor Department report showing that producer prices fell 2.8% in October, the most in at least 50 years.
The headline number was slightly misleading, however, as the plunge was triggered by a 24.9% drop in gasoline prices, a record freefall going back to 1947, when the government first began keeping track. Outside of food and energy, prices were actually up, by 0.4% in October.
But Nigel Gault, economist with IHS Global Insight, downplayed the core figure, saying that, “We saw huge commodity price increases really through the middle part of this year … It took a long time for that to start feeding though into the core inflation. So we’re probably seeing the last gasp of the inflationary implications of the previous price hikes.”
While Gault admitted he’d prefer a lower core rate, he added that, “One reason I’m not so concerned is that over the past two months there’s been an upward contributions to core from the vehicles component, and the vehicles component is very volatile from month to month … How likely is it that manufacturers would be able to pursue a price increase for light trucks? So I view it as a temporary increase.”
And Ian Shepherdson, economist with High Frequency Economics, predicted “further sharp declines” for inflation in November, however, “Needless to say this is all about energy prices.”
Source: Dollar Little Changed Against Euro
Advertisement
The CIA Uses It to Crack Codes... Now It Predicts Volatile Markets
Government mathematicians use it for high-level code breaking. And without this one formula, the B-2 bomber couldn't fly an inch off the ground. Now it's being used to "speak the language" of the market - with a 95% accuracy. Part of the formula looks like this: 0109(X)+1(g)667(Uk+l).
It's making a handful of savvy investors extremely wealthy by taking emotion - and losses - out of the game.
Get this just published report.
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.