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EUR Retests Two Weeks High
By Benny Nardino | March 31, 2008
The Euro, EUR/USD retested the high of the last two again at 1.5890. In this current market conditions is the EUR dollar buoyance sustainable?
While the Euro zone economists are still playing the wait and see policy, they might find this straining other areas of the economy. This is similar to the one adopted in recent years by the US Government (”strong dollar policy”) even when the dollar was falling. Look where it got us. For a now, this move seem to be holding out but for how long? For a very brief period today the pounds sterlings, GBP/USD seemed to be tracking EUR/USD performances. Something that has not happened for sometime.
However, for Germany and many other manufacturing nations in the EU zone, it must be very hard selling your products to the rests of the world especially the USA and emerging markets. The energy prices have not helped either in recent weeks.
In my opinion this waiting game might prove too dangerous in the long run.
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