Gabes22
Gabes22
Joined: Jul 19, 2011
  • Threads: 15
  • Posts: 1427
February 26th, 2013 at 11:37:56 AM permalink
I don't understand it, perhaps someone who knows more about what makes currency rates go up and down can enlighten me. The economy here is no great shakes yet the Dollar has rallied in the past month vs both the Euro and the Pound Sterling from $1.36/Euro to basically $1.30/Euro and from $1.57/Pound Sterling to about $1.50/Pound Sterling. Does this have to do with the possibility of sequestration getting the US on the path to getting its massive debt under control or is it just that no matter how bad things are here, that they are worse over there?
A flute with no holes is not a flute, a donut with no holes is a danish
odiousgambit
odiousgambit
Joined: Nov 9, 2009
  • Threads: 306
  • Posts: 8422
February 26th, 2013 at 11:43:44 AM permalink
Investors, banks, even countries, keep buying Treasury notes even though they are no longer triple A.

I am pretty sure that makes the US Dollar go up.
the next time Dame Fortune toys with your heart, your soul and your wallet, raise your glass and praise her thus: “Thanks for nothing, you cold-hearted, evil, damnable, nefarious, low-life, malicious monster from Hell!” She is, after all, stone deaf. ... Arnold Snyder
Gabes22
Gabes22
Joined: Jul 19, 2011
  • Threads: 15
  • Posts: 1427
February 26th, 2013 at 11:49:48 AM permalink
I get all that, but what is causing them to do that?
A flute with no holes is not a flute, a donut with no holes is a danish
1arrowheaddr
1arrowheaddr
Joined: Jun 20, 2012
  • Threads: 14
  • Posts: 297
February 26th, 2013 at 11:49:49 AM permalink
Britain's credit was downgraded from AAA to AA1 last Friday, so that is the main reason the pound fell from $1.54 to $1.50. I think there is a greater risk of recession in Europe and that is weighing on the currency markets as well. I don't think sequestration has much of an impact at all as it is only going to cut $44 Billion from a yearly deficit of almost $1 Trillion.
Gabes22
Gabes22
Joined: Jul 19, 2011
  • Threads: 15
  • Posts: 1427
February 26th, 2013 at 11:52:29 AM permalink
Thanks. I didn't hear about Britain's credit. The sequestration didn't add up to me either but sometimes perception can equal reality, and was wondering if some of that was going on with sequestration.
A flute with no holes is not a flute, a donut with no holes is a danish
onenickelmiracle
onenickelmiracle
Joined: Jan 26, 2012
  • Threads: 209
  • Posts: 8019
February 26th, 2013 at 12:20:30 PM permalink
Quote: Gabes22

I get all that, but what is causing them to do that?


There is still nothing safer and they don't know where else to put the money.
In the land of the blind, the man with one eye is the care taker. Hold my beer.
Flynn
Flynn
Joined: Aug 18, 2011
  • Threads: 12
  • Posts: 95
February 26th, 2013 at 12:24:28 PM permalink
The election in Italy...
My favorite bet: Double Down!

  • Jump to: