Gold and Silver Stocks and Related Commentary Message Board

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Politics : Gold and Silver Stocks and Related Commentary

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next

To: kacy_in_LA who wrote (8954)	3/17/2005 2:46:11 AM
From: Proud Deplorable	Read Replies (1) of 18308

Ukraine Ditches Dollar Peg biz.yahoo.com "Is this just the beginning exodus of dollar pegged currencies? Euro Rallies As Ukraine Drops Dollar Peg And Shifts To Euro Basket Wednesday March 16, 6:35 pm ET By Kathy Lien Chief Strategist, strategist@dailyfx.com • Euro Rallies As Ukraine Drops Dollar Peg And Shifts To Euro Basket • The euro's rally is back on track as the single currency completely erased yesterday's losses. As we had mentioned in our previous report, the blowout TIC number failed to have much underlying strength and based upon today's report, it seems pretty clear that other traders are jumping on our bandwagon. Its all about reserves these days - Ukraine announced today that they will be dropping their dollar peg and adopting a basket exchange rate that includes the euro. Although Ukraine is a relatively small player in the US Treasury world, what they are doing is an exhibition of what may be going on in the heads of other central bankers. With 42% of their trading activities conducted with the 25-member EU, it is logical that Ukraine has a vested interest in diversifying its reserves. They plan on raising the euro component of their reserves to 25%. The Ukraine is the latest country to join the reserve diversification craze. South Korea, Japan, Russia and even China to some extent are displaying waning demand for dollar denominated assets. Reserve diversification does not happen overnight and none of these central banks can afford a dollar crisis, yet this shift in official sentiment towards US treasuries is certainly alarming. Meanwhile across the Atlantic, ECB Trichet helped to fuel the euro's rally with upbeat comments on growth. Eurozone headline inflation also beat the flash estimate, rising from 1.9% to 2.1% yoy in the February. This has resulted in some mild speculation circulating around the markets that the ECB may deliver a rate hike towards the end of this year. "

Report TOU Violation

Share This Post

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next