Euro soars to new highs as dollar struggles

[Tom Yossarian Joad]

http://www.forbes.com/markets/newswire/2003/12/02/rtr1167136.html

TOKYO, Dec 3 (Reuters) - The euro hit record highs against the dollar for the fourth consecutive trading day on Wednesday as concerns about the U.S. current account deficit and Washington's handling of postwar Iraq overshadowed strong U.S. economic data.

Traders said the dollar's inability in recent weeks to capitalise on a steady flow of strong U.S. economic indicators disappointed the market and prompted it to go along with the U.S. currency's broad-based downtrend. "In a word, market players are cutting dollar positions in a show of dislike of what is going in on in the Middle East and (U.S. President George W.) Bush's policies," said Kosuke Hanao, head of forex sales at Royal Bank of Scotland.

"As a result, strong figures are essentially meaningless."

Strong U.S. November auto sales data released on Tuesday and Monday's U.S. manufacturing report showing the fastest pace of growth in 20 years were the latest in a string of bullish figures that would normally benefit the dollar but did not.
<snip>

[kysrsoze]

1. I'm surprised no one has commented on this

It's a serious issue. I'm a little worried about how things will look in 1st and 2nd quarter next year.

[Noordam]

2. Add this

from end of article.....

"The fact that the Reserve Bank is not paying too much attention to the rising Aussie dollar, unlike the New Zealanders or Canadians, just gives it the green light to move higher," he added"

Nobody is watching the store....

[Tom Yossarian Joad]

3. The ramifications seem pretty obvious to a country that has

been shipping all our manufacturing jobs overseas for the last 20 years...

Throw the ability of OPEC to shift to the Euro...

[ozone_man]

5. No, that's what the Iraq war was about,

to reverse SH from switching to the euro. Just my 2 cents.

But, it sure seems like the dollar is about to go belly up. I would buy gold and euros, but it may be a bit late for that now.

[cthrumatrix]

7. it's not a new story...it's a serious story that can only get worse and

we really don't know the damage ahead with the derivatives out there and gold going over $400 oz.

My guess if these two and rates go crazy...a major bank is going down...it's like juggling with swords

[ramapo]

9. Check the economics forum

There was a prediction that the dollar would crash either yesterday or today. It hasn't crashed but it isn't flying on four good engines either.

[54anickel]

10. You mean that "spooky" thread with the guy pushing gold and spam?

I started reading that one. Too doom and gloom for me. If he's right, there's not much I can do - not like I have money laying around to buy gold coins or anything. I have been thinking about getting gold for a while, but with being out of work and all it just ain't happening. Hell, with being laid off I've already cornered the market on Spam, Ramen, Beans & Rice, etc.

[ramapo]

11. That's the one..

Perhaps a bit wacky, certainly doom & gloom buth there's a lot of that in that forum.

I don't have any gold. Couldn't buy enough to make a difference. At least you'll be in good shape with all that Spam

[Kellanved]

4. That's a strange explanation

Honestly: I don't think so. It's the Dollar dropping, the Euro is not rising; nor is the Pound for that matter.
"A show of dislike" yes... sure - I've never heard such a thing expressed by a trader, in fact I've yet to see a political trader.

The thing he's talking about is the possible shift of several Oil producers to the Euro; but again: we're seeing no strong figures, but one weak figure.

[54anickel]

8. Thought the same when I read it the first time, "Market Players" do just

that, play the market.

"In a word, market players are cutting dollar positions in a show of dislike of what is going in on in the Middle East and (U.S. President George W.)

There is a lot of bad news out there, I just did not know how to respond to this particular article. It seemed confusing to me. But I am not an economist either.

[david_vincent]

6. And gold hits $402

putting two and two together... can Governor Bush?