The Euro is closing in on the record high it achieved
against the Dollar in July. Once again,
it is the interest rate story which is driving the currency skyward. The continued rise of the collective economies
of the EU is coinciding with a decline in the American economy, spurred by
falling prices in the real estate and capital markets. As a result, economists are forecasting that
this month’s respective central bank meetings will bring about a rate hike in
the EU and a lowering of rates in the US. This prediction, which is also supported by the prices of interest rate
futures, would narrow the EU-US interest rate differential to just 75 basis
points! Bloomberg News reports:
Traders also added to wagers the euro will strengthen against the U.S.
dollar, figures from the Washington-based Commodity Futures Trading Commission
showed on Sept. 7.
Read More: Euro Rises to
Month-High Against Dollar on Growth, Rate Views
Original post by Jimmy Atkinson and software by Elliott Back
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