The Dollar Continues to Slide
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Steve Verdon | Friday, December 1, 2006 |
The dollar has fallen to a 14 year low and 20 month low against the British Pound and Euro respectively. Most analysts are pointing to the weak data released by the Institute for Supply Management showing that its key index for manufacturing at its lowest point since April of 2003.
“There’s no reason to buy dollars, especially versus European currencies,” said Thierry Elias, head currency trader at Banque Natexis Populaires in New York. “We had Chicago PMI yesterday, and the ISM report this morning is pointing to slower economic growth in the U.S. It just supports the mentality that has been in place for the past 10 days, and that is: sell dollar.”
About the Author: Steve has a B.A. in Economics from the University of California, Los Angeles and attended graduate school at The George Washington University, leaving school shortly before staring work on his dissertation when his first child was born. He works in the energy industry and prior to that worked at the Bureau of Labor Statistics in the Division of Price Index and Number Research.
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It's a good thing we invaded Iraq to prevent them from denominating their oil in euros, or we'd be in even worse shape.
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