Will We See the Euro Break $1.58 Tomorrow?
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Editor’s Note: The euro has been threatening to break $1.58 this week. It’s never quite made it. Currencies expert Chuck Butler says it could well break that barrier this week. There’s a doubly whammy coming. The European Central Bank (ECB) is likely to raise rates. And jobs data from the US is set to show negative job creation for six months running. Another day of watching the euro rise up to 1.5815 and then see it get sold back below the 1.58 figure when the NY boys arrive at their desks. The pattern for the first two days this week has seen that selling in the morning, and then a slow rise in the afternoon, and then back over 1.58 in the overnight markets. That’s where we are again this morning…
So, it seems that 1.58 is the boogeyman for the euro these days… That could all change tomorrow, as we will have the double whammy of the ECB rate hike and the Jobs Jamboree showing negative job creation for the 6th consecutive month. Yes, that’s right, every month so far in 2008 has recorded negative jobs… OUCH! And people say we’re not in a recession? They should know better than to spout off stuff like that when the empirical evidence is as plain as a man with a hatchet in his forehead!
The dollar bulls are laying low of this double whammy tomorrow, and they are playing that old TV game show and chanting… No Whammys, No Whammys! HA!