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Strategies & Market Trends : Currencies and the Global Capital Markets

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To: Ahda who wrote (2751)	12/27/2000 11:26:07 PM
From: Hawkmoon	Read Replies (1) of 3536

Darleen... if the dollar reaches parity with the Euro, then what will be the impact on Europe's ability to maintain its trade surplus vis-a-vis the US? Will it inhibit European growth, or assist it? Conversely, if the US dollar is now weaker vis-a-vis the Euro at parity, do US exports to Europe become more attractive? The US is much less dependent on exports than imports for GDP growth while the reverse is the case for Europe. Now ask yourself who wins in a USD vs Euro battle. Regards, Ron

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