Posts Tagged "us dollar"

Mirror, mirror on the wall, who’s the fairest currency of them all?

Posted by on Jun 6, 2012 in Commentary, Featured

Mirror, mirror on the wall, who’s the fairest currency of them all?

It’s been an interesting few days. Friday started with gloomy news from the UK manufacturing sector. GBP unloved as the UK remains recession bound. Then the news from the USA. Non-farm payroll figures upstaged the UK in their disappointment. Cue USD joining the ugly currency parade. So now we have EUR, GBP and USD in this parade. The Swiss National Bank decided a while ago to limit the value of the Swiss Franc by linking it to the value of the Euro. The setting of a “floor” rate of exchange effectively fixes the value of the Swiss Franc, so better add CHF as well. With four...

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What is a Euro worth?

Posted by on May 25, 2012 in Commentary, Featured

What is a Euro worth?

I spent yesterday with many other traders at a trading conference in London. An enjoyable day in good company listening to some very good presentations and panel discussions. Naturally, there were many questions about the Euro and Greece’s (future) participation in it. It is fair to say that pretty much everyone in the room (there were a couple of hundred or more) had a negative view of  the value of the Euro. But why? What is a fair price? Hasn’t all of the downside risk already been priced in? Wouldn’t the Euro be stronger without Greece? Once you start asking these...

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New 2012 lows for Euro

Posted by on May 23, 2012 in Commentary, Featured, News

New 2012 lows for Euro

It must be some kind of justice that the Euro is currently trading near the lows for 2012 against the US dollar on the eve of another EU summit. As I write, the Euro has just set a new low for the year, heading below 1.2600 for the first time and setting the lowest rate for the currency since August last year. With continuing disagreement in the Euro about substantive measures to solve the problems in the Euro area, this level of trading can only be indicative of market expectations for the EU summit later today. The more that heads of government talk about keeping Greece inside the Euro...

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