euro is only 500 pips from 1.5 I guess this poll should be changed to..Will we see 1.5 in 2007 or 2008 !!
eur/usd may hit 2.00 during 2008 if the us maintains its current account deficit policy while the fed slashes rates to overcome a sluggish economy and additional blowouts in the banking sector surface along the way. the euro might be on the verge of becoming the new undisputed world reference currency at the expense of the unavoidable usd demise.
EUR/USD: The More Things Change The More They Remain The Same Tuesday, November 20, 2007 11:31:00 AM New York, November 20. Yesterday we wrote in this column about the Ghost of Thanksgiving past - last year's Thanksgiving raid on the dollar and it seems that the punters are off to a good start. After closing last night around 1.4670 a conglomeration of the "usual suspects" are attributed with driving the pair through exotic barriers to highs around 1.4612 (ish). Since then spot has slipped back to 1.4780 as if 1.48 was just some kind of ephemeral dream. As pointed yesterday, the target for this move, if it emulates last year's 2.25% pop is 1.5000, a nice round number that should get the hedge funds slapping themselves on the back, the European exporters stepping on out onto high window ledges, and have French President Nicolas Sarkozy apoplectic. Speaking of Msr. Sarkozy, he has his hands tied with striking rail unions which have disrupted the country for a week, who were joined today by teachers, postal staff, nurses, air-traffic controllers, tax officials and other civil servants who staged a one day strike to demand pay rises and protest budget cuts. Yesterday state-owned SNCF rail offered a package worth E90mn a year as an inducement to workers, which was rebuffed. AP news services report that according to Finance Minister Christine Lagarde, the strike is costing the country between E300-400m per day. SNCF claims it has lost E100mn and the metro operator RATP E24mn. Now none of this is good for France, or the ECB budgeting process, and will intensify French rhetoric over the high EUR, but the specs don't care, buy Euros where diamonds. EADS, the owners of Airbus re-budgeted at EUR/USD 1.3500 and estimated four months ago that each additional big fig would mean they would have to find another E1bn in cost savings. There won't be much ho-ho-ho in France this festive season.