As usually when all pundits declare the death of the EUR it will not happen. As we now have even taken out the 1.2750 level we are in for a bigger treat as the 38% level at 1.3140 is the next target. We might see a little consolidation for the next days but buying weakness is still the right thing to do for now. America can anyway not afford a strong Dollar over a long period and as we go towards the November elections we can rather expect punishment of the Dollar as Republicans will gather at least on house putting America in ultimate turmoil as an opportunistic and propagandistic president will be turned into a lame duck. Last quarter of 2010 will have a weak Dollar trend as I stated many times the economic situation of America is actually worse than Europe by all parameters it has only a political strength component which will be diminished by the election outcome.
Thursday, July 15, 2010
EURO update
As usually when all pundits declare the death of the EUR it will not happen. As we now have even taken out the 1.2750 level we are in for a bigger treat as the 38% level at 1.3140 is the next target. We might see a little consolidation for the next days but buying weakness is still the right thing to do for now. America can anyway not afford a strong Dollar over a long period and as we go towards the November elections we can rather expect punishment of the Dollar as Republicans will gather at least on house putting America in ultimate turmoil as an opportunistic and propagandistic president will be turned into a lame duck. Last quarter of 2010 will have a weak Dollar trend as I stated many times the economic situation of America is actually worse than Europe by all parameters it has only a political strength component which will be diminished by the election outcome.
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