U.S. Dollar makes huge rebound againts the Euro, and other currencies.

Discussion in 'Economy' started by 52ndStreet, Aug 8, 2008.

  1. 52ndStreet
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    52ndStreet VIP Member

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    The U.S. Dollar made a huge rebound againts the Euro Today.Worries about the European Unions overall economic future, were reasons stated for the Dollars dramatic rebound. I always felt that the Euro was over valued,when compared to the Dollar.
     
  2. editec
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    editec Mr. Forgot-it-All

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    The dollar is rebounding somewhat because the price of oil is going down and that means the economy will get stronger so people have greater confidence in it.

    Values of species are all about confidence, ya know?

    Perception is reality.. at least until reality shows the market mavens that they've been collectively deluding themselves, at least.
     
  3. Zoomie1980
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    Zoomie1980 Senior Member

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    No surprise. The dollar is as overdone on the down side as housing in the US and oil was on the upside.

    Oil now down to $115, that's a 25% cave-in in less than a month and that is pretty unprecedented. Lots of margin calls out there, but then lots of major windfalls on the shorts.
     
  4. Paulie
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    Paulie Platinum Member

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    Yeah, I'm sure the ECB has nothing to do with it at all.

    And I'm sure our almost TRILLION dollar trade and budget deficits are going to skyrocket the dollar into astronomical international value, too. Not to mention the many banks and other major corporations that have still yet to completely collapse.

    Let's get all giddy about a week long rebound, and ignore the long term writing on the wall.
     
    Last edited: Aug 8, 2008
  5. Toro
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    Toro Diamond Member

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    The dollar has bottomed.

    Short the euro.
     
  6. Zoomie1980
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    Zoomie1980 Senior Member

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    I started shorting euros over a month ago. Should swallowed a bitter political pill and SPECULATED on oil as I posted here when it hit the $130's it was at or near the top and would cave, and cave fast when started. Speculators will probably drive it down as hard as they drove it up, overdoing it yet again.....
     
  7. Charles_Main
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    Charles_Main AR15 Owner

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    The dollars gains Vs he Euro have more to do with recent horrible Economic Numbers in Europe than Anything else. That and the dropping price of Oil.

    EU nations are facing Stagnant to Negative Economic Growth. A price of their Many Socialist programs. The Future does not look bright for them. They have some serious rethinking of their entitlement programs coming. As I have said for years, their socialist programs are unsustainable in the long run, Their aging Populations will bury them in Debt if they do not make some major changes.
     
  8. Paulie
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    Paulie Platinum Member

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    I'll short the Euro, but not because I think the dollar has bottomed.
     
  9. editec
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    editec Mr. Forgot-it-All

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    SPOT on, Paulitic.
     
  10. editec
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    editec Mr. Forgot-it-All

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    As Europe's population is aging even more quickly than ours, I completely agree with those of you who claim our current system is unsustainable.

    Japan is in the same boat, incidently.
     

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