Challenge to all Liberals: Explain The Rising Dollar

I can't but by golly that is good news.

The dollar firmed off a two-month low against the euro because of better than expected employment figures in the U.S.

The dead cat still bounces, but see below.

The euro headed for a weekly decline against the dollar on speculation a weakening European economic outlook will rule out future interest-rate increases. The Euro traded near a one-week low against the dollar after European Central Bank President Jean-Claude Trichet said he has ``no bias'' and that economic growth is ``not flattering,'' following the ECB's decision to raise borrowing costs yesterday. The euro touched a one-week low of $1.5675 and is currently trading at $1.5704 as of 7:30 am, GMT. The euro has fallen 0.5 percent this week.

``Trichet has confirmed that the central bank has shifted back to a more neutral stance,'' BNP Paribas SA strategists led by Hans-Guenter Redeker wrote in a research note dated yesterday. ``We believe that interest rates are now on hold, suggesting that further downward pressure on the euro is now likely to develop.'' The euro may fall to $1.53 on a break below $1.5650, according to BNP.

The Australian and New Zealand dollars rose against the euro on speculation the European Central Bank will refrain from adding to yesterday's interest- rate increase, bolstering demand for higher-yielding currencies. The South Pacific currencies climbed the most in seven weeks as ECB President Jean-Claude Trichet said he has ``no bias'' on further moves after raising the region's main refinancing rate to 4.25 percent. The Australian dollar headed for a weekly gain as the difference in yield between two-year Australian and European bonds widened to near the most in a week.

The dollar may advance to 107.70 yen, according to charts traders watch to predict price movements, said Tomoko Fujii, head of economics and strategy for Japan at Bank of America Corp., the second-largest U.S. bank. A so-called candle chart that displays a currency's high, low, open and close for each day, indicated traders became bullish on the dollar. The upside target of 107.70 was on its 200-day moving average, she said. The dollar-yen's short-term technical momentum is bullish, and candle charts on July 2 and yesterday showed a so-called bullish engulfing pattern, a formation that shows the buying pressure exceeded selling pressure, reversing the dollar's bearish-trend, she said. In this formation, the first day's body, which is the area between the open and closing price, is engulfed by the second day's body. USD/JPY currently trading at 106.75 as of 7:57 am, GMT.

Richard, can you tell me what your copy paste answer means, exactly ???

You can call it a rise but one month daily.

http://www.exchange-rates.org/history/EUR/USD/G/30

Trichet raised the interest of the Euro a quarter point yesterday.

Other intelligent folks in the world just call what's going with the Dollar inflation, and the other word recession in the US is also a highly used phrase now.

But not Bush. However, the word intelligent has never been used in the same sentence with Bush ever.

Well, I did put 5% of my investment portfolio into commodities...

Nah! That can't be it.

Let me see if I can explain this a bit more clearer for ya'll.

First, Trichet raised the interest of the Euro bond a quarter point yesterday. He felt the need to do that because of the inflation that is going on around the world and particularly in Europe and by raising the Euro bond rate even a quarter of a point that will make it more attractive to own. Trichet has only one thing to look out after, and that one thing is inflation, while Bernanke has two things to watch out for inflation and the economy of the US.

Second, the Euro was at a high when this was being done. What would an investor do when something is high? Sell it. Which they did but also for another reason which is that the SEC is changing the investment rules. However, for the current time, like over a long weekend most want to park their money in a safe place, like the US Dollar. And when folks buy things the price almost always goes up in value, as it did in the Dollar yesterday.

Now that other thing that is happening, the changing of the rules by the SEC. Those changes were published for comment on June 25, five or so days ago. Those SEC proposed rule changes should be understood by now, and even tho there is a posted comment ending date sometime in September this year, they are now a lot more known by the lawyers in the Broker/Dealer Houses and the Investment Banks, the Banks and the Insurance Companies.

Also of note, over time because Trichet raised the rate of the Euro, the EURO will be more valuable, thus reducing or hopefully at least stalling the inflation rate in Europe.

But in the Euro either long or Short term anyone that held almost any position in the Euro needed to sell it yesterday or they would lose money when the price of the Euro normally will rise in another few days or so.

well atleast Richard tried....
no one else did...

We're in a bear market Jack.

Sell the rip (Euro)

Buy the dips (Dollar)

It's a bear market, and the average length is 18 months. Or we could be going down like the USSR did, which is my prediction.

An aging Rowan Atkinson will play President Black Adder in the movie version.

Ben Bernanke is using helium now? The Euro is at least 5% gold, so why don't we make our dollar 100% gold? Otherwise we're just being extorted by the Fed. Definitely watch Aaron Russo's masterful 'America: Freedom to Fascism.' We need tax and spending reform / limits -- preferably get rid of the income taxes and go back to the tariffs and duties that helped make America prosperous in the first place (like the Constitution mandates). I don't think things are going to get appreciably better until we really get off our keisters and get these thieves out of office. Their goal is to bring America down to Third World status, because they're basically global socialists. So listen to good patriotic folks like Alex Jones and Joyce Riley, to lead us home to the promised land!

gorilla boy will no longer be allowed to comment on my articles. He never adds a thing, other than telling me why I'm more stupid than he is. He's gone.