The dollar allowed the euro to retreat slightly after the Eurozone currency reached the lowest level in 2010 versus the greenback, as unemployment figures and durable goods data published today cooled down the optimism towards the U.S. economic recovery. Even with negative reports in North America, the euro had only a timid rise considering the extremely unfavorable market sentiment towards its region. EUR/USD is currently at 1.3528.
Initial jobless claims rose again to 496k applications during the past week from a previous revised reading of 474k applications. Forecasts were wrong expecting just 461k unemployment people applying for benefits.
Core durable goods orders frustrated traders showing a declined of 0.6% in January from a previous revised advance of 2% in December. Forecasts expected this report to rise by 1.1%.
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March 1st, 2010 at 9:33 pm
This is a great article.
One thing I do not understand, and which no-one seems to be addressing is this:
- The Euro is sinking fast against the dollar.
- The British pound is being talked down – 88p to the Euro and near parity with the dollar have been suggested.
- The dollar has lost enormous value, hence the rise in gold.
All three currencies are losing value against various benchmarks. All appear to be in trouble.
Which currency will win out in the mid to long term and will a new currency be introduced as the global standard currency to replace the dollar?
Simon.
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Jan Baros Reply:
March 3rd, 2010 at 5:09 am
I think in the current market situation its hard to point a winner, but its easier to see who will lose the most, and that is, doubtlessly, the British pound.
I don’t see any currency replacing the U.S. dollar, at least in 2010.
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