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Tuesday, September 30, 2008

Any hope for the dollar?

In the news there seems to be nothing possitive about U.S. economics.....

...however a couple days ago Cnn claimed that the U.S. dollar is gaining some ground on the Euro. Not only that but the Euro continues to loose a couple cents a week, while the U.S. dollar has increased a couple cents. I think that this is very possitive because it shows that we are not alone. Alone is the sense that other economies all over the world rely on the U.S.. With a little poking around, Euorpe, Germany, UK, France and Luxembourg. Many of these countries rely and match the Euro against the dollar. But why would the Euro start declining when the US dollar declines? There are many answers, but one of the main factor in global economics is that intense world trade influences prices in markets. It is remarkable to look at the last 4 years of exchange rates vs. the U.S. market fluctuations, and you will see that there is a heavy dependance on U.S. expectations, not only in the U.S. but a dependant look from around the world. But with the current gains of the dollar, and delinces in the Euro, maybe value and trust will return to the U.S. dollar.

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