Euro jumps to new record against dollar on weak US data

[lovuian]

http://story.news.yahoo.com/news?tmpl=story&cid=1503&ncid=1503&e=1&u=/afp/20041223/ts_afp/forexeurope.041223180930

Euro jumps to new record against dollar on weak US data

52 minutes ago Top Stories - AFP



LONDON (AFP) - The euro surged above the level of 1.35 dollars for the first time since its launch 1999, powered by weak US economic data and with analysts warning that the US currency had further to fall in 2005.




The single European currency in late-day trade shot up to a record 1.3507 dollars before slipping back to 1.3490 against 1.3385 late Wednesday in New York. The euro has now risen by almost 15 percent against the dollar in 2004.


The dollar meanwhile was at 103.67 yen after 104.20 on Wednesday.


"The break above the 1.35-dollar area is .. in light of the US data which put the dollar under pressure," BNP Paribas economist Iain Stannard said.


more...
Bye Bye Dollar!!! drip drip drip!!!

[Wabbajack]

1. I heard that Colombian drug dealers

have started using the euro.

[Wilber_Stool]

5. That's almost a relief

I read yesterday that they were investing in Treasury bonds through Cayman Island banks.

[lebkuchen]

9. Isn't that what Halliburton has been doing for years?

[SOS]

10. The relief may be premature....

Major foreign holders of US treasury securities (in billions):

Japan 715.2
Mainland China 174.6
United Kingdom 140.9
Caribbean Banking Centers* 85.2

*Includes Bahamas, Bermuda, Cayman Islands, Netherlands Antilles, and Panama.

[Commie Pinko Dirtbag]

2. Holy crap, this is starting to get ridiculous. (nt)

[fob]

3. Oil to begin pricing in Euro's in 5...4...3...

Will bush*s strong dollar "policy" kick in in time?

Will bush* simply continue talking to his tie?

Will bush* be able to watch a football game AND eat a pretzel this year?

Tune in next week folks, same bush* shit, same bush* madness

[VegasWolf]

23. It already is, over the last 12 months OPEC has increased its

total bias in euro's to over 30%, up 12% in the last year alone.
Soon, it will be over 50%. But you can't blame them, keeping
money in US dollars is just throwing money away as the dollar
decreases its value.

[Stuckinthebush]

4. {Slaps head with hand repeatedly}

"Should've bought Euros! Should've bought Euros!"

I remember when it was $0.76 for a Euro. I thought to myself, "Hmmm...that might be a nice investment. I could put a few thousand into Euros from another vehicle."

Needless to say....I didn't do it.

Damn!

[BlueJazz]

6. To all Repugs (and Freeper trollers)

Well, are you gonna' blame this on Clinton also?
You've had a Republican president PLUS a Republican Senate
PLUS a Republican House of Representatives PLUS Numerous Republicans in every appointed position of power known to man for 4 years and this is the best "Your People" can come up with??...Pathetic...

[lovuian]

8. This same thing happened under Nixon Reagan and Now Bush

Its a Republican Pattern!!!

[KerryReallyWon]

7. I am told Dems in US are going to banks to change to Euros, to protest Bus

And the feedback at the banks, from the tellers, who set them up with a bank employee to order the euros, is "what a great idea" to protest this war! Maybe that is why this is happening. It was the plan. I don't have much, but I thought to do it with some savings, just so the US can't use my money, while it is in the bank!!!

[whistle]

11. The U.S. dollar it appears is quickly becoming to the Euro...

...what the Canadian dollar has been to the U.S. dollar for the last twenty years. This does not bode well for the U.S. economy, the U.S. currency situation around the world and for the U.S. trade deficit which will continue to widen as virtually all of the consumer goods that U.S. consumers buy now except of food are imported. The next big hit will be hyper-inflation on the dollar going to double digit levels if this trend is not reeled in. The Chinese have artificially kept their currency low against the dollar but they will not bite that bullet much longer and when they allow the Yuan to float, hold onto your socks speculation is that the CNY is at least 20% undervalued compared to the U.S. dollar:


Thursday, December 23, 2004
1 US Dollar = 8.28650 Chinese Yuan Renminbi
1 Chinese Yuan Renminbi (CNY) = 0.12068 US Dollar (USD)

Median price = 8.26650 / 8.28650 (bid/ask)
Minimum price = 8.26650 / 8.28650
Maximum price = 8.26650 / 8.28650

[txaslftist]

12. Actually the Canadians are doing all right.

No deficit, reducing debt, fiscal responsibility and great employment...:)

[whistle]

14. That is correct, now they are, but it has taken two decades....

...a full generation of massive belt-tightening to get where they are today. How long will the U.S economy take given that BushCo has pushed the Federal debt ceiling now to $8.5 trillion, allowed the U.S. dollar to go from:

Tuesday, January 23, 2001
1 US Dollar = 1.06474 Euro
1 Euro (EUR) = 0.93920 US Dollar (USD)

....to:

Thursday, December 23, 2004
1 US Dollar = 0.74705 Euro
1 Euro (EUR) = 1.33860 US Dollar (USD)


That is a one third loss relative to the Euro. Our largest trading partner is still Canada when back when Bush became pResident:

Tuesday, January 23, 2001
1 US Dollar = 1.50347 Canadian Dollar
1 Canadian Dollar (CAD) = 0.66513 US Dollar (USD)

...now it's:

Thursday, December 23, 2004
1 US Dollar = 1.24170 Canadian Dollar
1 Canadian Dollar (CAD) = 0.80535 US Dollar (USD)

And compared to Mexico where a large number of U.S. jobs have been sent under Bush:

Tuesday, January 23, 2001
1 US Dollar = 9.80003 Mexican Peso
1 Mexican Peso (MXN) = 0.10204 US Dollar (USD)

...now it's

Thursday, December 23, 2004
1 US Dollar = 11.17000 Mexican Peso
1 Mexican Peso (MXN) = 0.08953 US Dollar (USD)

The Mexicans seem to have allowed their currency to slip by about 12%, but they have always been carelss about currency stability.

So, that's a 33% loss against the EURO, an 18% loss against the Canadian dollar and a 12% gain on the Mexican Peso. Lot's of other shifts to other currencies but the trend is now mostly downward for the U.S. dollar. American worker's wages have bearly kept up with the U.S. inflation rate, which is now on the rise.

Perhaps NAFTA needs it's own currency which we could call the CANUSMEX! Come Jan 23, 2005 everyone in the U.S., Canada and Mexico would go to their banks and exchange dollars and Pesos for CANUSMEXs, average everything out and start all over. That would be a nice shock to the world economy, eh!

[TahitiNut]

13. Here's a graph that tells it all.

See http://news.bbc.co.uk/2/hi/business/4121555.stm

[VegasWolf]

15. And the US stock market still goes up. Buy Yahoo at 600!!! n/t

[SKKY]

16. Oh God, this is gonna suckity suck suck...

...I'm moving to Spain in 2 months. My quality of life keeps going down, down, down.

[0007]

17. Why is the stock market surging?

[davhill]

18. It is only surging in Dollars

If you look at S&P as if it were denominated in Euros is is flat.

[R Hickey]

19. The stocks are rising because they are being counted in smaller dollars.

If Bush devalues the dollar by fifty percent, then gold, Euros and stocks will increase in price by fifty percent.

A more extreme example: if the dollar were to suddenly drop in value by ninty percent, then a stock formerly priced at $10 a share, would soon rise to $100 a share.

[0007]

21. Thanks!

[brindis_desala]

20. This underlines the insanity of *'s war.

By making a quagmire out of Iraq he has not only forced down the dollar he has exposed our overextended military making "unconventional" warfare (God help us) more tempting. Already there are reports of them using napalm. This was supposed to be a Rummy's shock and awe to intimidate Old Europe and OPEC. Our emperors have no clothes and two thirds of the American public is brain dead. :(

edit:typo

[VegasWolf]

22. thanks to chimp pretty soon the peso will be on par with the dollar.

[JanMichael]

24. Here we go. Into the unchartered waters of a US Dollar Selloff.

It may not happen this week, next week, or even next year, but it will happen.

$1.45 is my new prediction for when the big (Assholes) say "SELL"!!!!

[gristy]

25. A month ago I finally put 1/2 my 401K into a European stock index fund.

I hedged the rest with 30% in bonds and 20% in a US stock index fund. I've got too many dollars in the bank, but much of that will be converted to LAND when I close in two weeks. So I am finally starting to feel a little more comfortable...

[kineneb]

26. We could see this coming.

When we were in Europe in 2002 we figured that the Euro would be the next "big" thing. We were able to travel from Belguim to Germany and never show a passport or change money. It was great. I told Hubby that the Euro was the way to go and the dollar had better watch out.
Well, since then the deficit went sky-high and we wish would have invested in Euros. But where our budget is now...our friends bought us groceries this week because there were more bills than paycheck. Sigh.

[lovuian]

27. I think Bush is learning the EU is going to make him fiscally responsible

or :nuke: or dollar!!!

[indepat]

28. A highly-devalued currency is such a small price to be made safe,

and for our country to otherwise be strengthened and made stronger.