Discussion in 'Trading' started by crgarcia, Dec 16, 2007.
The Euro plateaued because oil did NOT got past $100 per barrel?
Uh, it is a little more complicated than that...
Interest rates not cut 50 basis points and inflation worries have caused the USD surge of late.
Isn't inflation supposed to be bad for a currency (in this case the dollar)?
Inflation spells the raising of interest rates. Money always flows to the currencies with the highest rates.
Even though the Fed cut rates, they did so LESS than everyone was expecting, making that a plus for the USD.
Then the inflationary data showed reason for increased inflation concern on Friday which made the possibility of rate hikes something to consider.
Again, good for the USD.
Hope that helps!
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