Meanwhile, once widespread fears about dollar liquidity have given way to worries about an oversupply of the U.S. currency, strategists said.
"The world is awash with greenbacks; they're coming out of the woodwork, they're growing on trees, and the markets are concerned." said Stephen Gallo, head of market analysis at Schneider Foreign Exchange.
It looks like it is time to punish everybody that sought safety in cash and T-Bills. The dollars current down-turn is nothing short of spectacular. Half of the gains since July have been erased in a matter of days.
It looks like deflation may be ending after a short 5 months visit. The transition from our current deflationary recession into an even worse inflationary recession will be a painful one. IMHO
Whoohoo!!! This means all my Canadian dollars are getting worth more!
Your dollars are up a bit, but Canadian currency is staying pretty weak because they are getting hit with some bad economic reports right now. Their housing crisis seems like it is starting to gear up now.
Also of course the export so much to the US that they want a weak currency for fear that we will stop buying from them.
Anyhow their books are way stronger than ours and eventually that should show up in the exchange rate whether Canada likes it or not.
Dollar extends slide after Fed action
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Posted - 12/17/2008 : 06:02:22
