Skip to comments.Euro jumps to 11-month high against dollar
Posted on 01/25/2013 11:45:49 AM PST by Olog-hai
The euro hit an 11-month high against the dollar after the European Central Bank said that banks were expected to pay back emergency loans faster than expected, increasing confidence that Europes debt crisis is easing.
The euro rose as high as $1.3479, the highest since Feb. 2012. The euro was worth $1.3371 late Thursday.
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this is not good for us................
I guess that sounds better than “Dollar falls to 11-month low against Euro”
Two currencies that will fail in the next few years as both economies collapse. Europe will likely fall by year's end.
They’re counting on very short memories. I’ve been watching currencies since 2007, and occasionally going into foreign denomination CD’s when the dollar spikes.
While the Euro might well be at an 11 month high versus the dollar, it wasn’t all that long ago that it was tanking badly versus the dollar, less than 11 months. I know, I got a Euro denominated CD from Everbank when the Euro fell below $1.21.
The EU still has problems, they have not even come close to resolving them. Greece is still falling into third world style chaos, Ireland, Portugal, Spain are still technically bankrupt.
While you can’t cash out without penalty, most of the gain in such a CD comes from currency valuations. Interest is minimal on most of them.
Time to cash it out, the fools are crowing about a “strong” Euro and a “weak” dollar again. The cycle will repeat. It’s been doing this fairly reliably almost the entire time.
I suppose it’s stupid of me to be even posting this, since I’ve done better doing this than anything else I’ve got going on, it’s like playing on FOREX with an FDIC guarantee on principal.
But, I really hate the word games being played, so there you go.
In other words the dollar fell to an 11 month low against the euro. But what if the euro rose or fell against another currency, such as the yen? Or rose or fell against the Swiss franc?
Problem is there is no stable yardstick by which to measure the value of any currency.
There is a de facto peg of the Euro to the Swiss Franc. Back when the Euro was tanking badly, the Franc was also wildly appreciating to the point of endangering the Swiss economy, which is largely export oriented.
Things settled down afterwards, on both sides of the equation. I don’t see it holding long term, nothing anyone has tried thus far does. Such distortion creates opportunity for the observant, though.
One of these days, it’ll stop being so much like clockwork, speaking of the Swiss. People laddering back and forth from strength to weakness and back again when the tables are turned will eventually get burned. Haven’t yet, and I suspect such a thing will be a threat to most major currencies if and when it does occur.