Dollar Strengthens Against Euro
Dec 10th, 2008 | By Doug Casey | Category: Financial NewsIn the currency market, the dollar pushed higher vs. the euro. Late Tuesday, the euro was trading at $1.2861 vs. $1.2943 on Monday.
There was little in the way of hard data to drive the market yesterday. The day’s only significant number was a report from the National Association of Realtors, showing that sales contracts on previously owned U.S. homes fell 0.7% in October, as compared with September.
The euro’s losses were capped as Germany’s closely-watched ZEW economic sentiment indicator unexpectedly rose to -45.2 from -53.5 in November. Economists’ expectations were for a drop to -55.
However, the December reading remained well below the historical average of +26.8, offering traders scant room for optimism going forward. Joerg Radeke, an economist at London’s Center for Economic and Business Research said the rebound “is likely to be only a temporary correction.”
Also yesterday, the Bank of Canada cut its benchmark interest rate more than expected, reducing the overnight rate by 75 basis points to 1.50% because of the “weakening outlook for growth and inflation.”
As most analysts were projecting a shallower rate cut of 50 basis points, the loonie wound up taking a 1.5% hit against the buck, dropping to just over 79 cents.
Source: Dollar Strengthens Against Euro
Advertisement
They've led you to believe that investors who want outsized gains must take on ridiculous risks.
Click here to learn how a Small One-Time Investment Could Grow Until It's Larger Than All of Your Other Investments Combined.
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.