The European Bank said last week they would intervene if the greenback hits 1.50 and it’s not too far off.
In European trade, the euro beat its previous historic peak of 1.4752 dollars reached on November 9. It later stood at 1.4785 dollars, which compared with 1.4665 dollars in New York late on Monday.
The greenback also fell heavily against other major rivals, including sterling and the Swiss franc, as a slew of negative reports in the banking sector on Monday shook investor optimism.
The Eurozone isn’t exactly a model of good fundamentals so it gives you some idea just how bad off the world views the state of the US economy. Will the US recover? Definitely. The problem is timing and the dominance once maintained in the market will not be coming back any time soon, if ever.
This brings us back to the issue of our next president. Will that person be able to bring the world together and successfully work with other friends or will they stick with the current “go it alone” model that brought us here in the first place?