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Exchange rates are in turmoil. This week there are some historical highs and next week we might see others (probably on the same currencies). The Dollar is at historical lows relative to the Euro and the pound. You get now 1,36 dollars per Euro and 2 Dollars per each sterling you have in your pocket.

This turmoil seems that is better explained by a US dollar problem: low growth and high external deficits in the US. Moreover and related with these arguments there is an expected reversal of the returns on each currency. The monetary/interest rate cycle is expected to reverse, with the Fed probably lowering rates (despite the stubborn and firm resolution of the Fed against this market view) and the UK and Euroland going towards further hikes. In the UK higher than expected inflation is motivating higher rates. Whereas in Europe

Comentarios

Angel 1 Mayo 2007 - 09:26

Great financial weblog indeed.Mortgage refinancing
holds stuff on refinance.

Mortgage refinancing 1 Mayo 2007 - 09:27

Yeah thats great blog indeed.

Cagcoogsanona 6 Marzo 2008 - 01:55

rosie@triad29.com

rosieponder@verizon.net

Not only do they try to rip you off, they send your email out and you get a ton of junk mail.

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