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Strategies & Market Trends : Mish's Global Economic Trend Analysis -- Ignore unavailable to you. Want to Upgrade?

To: mishedlo who wrote (109895)	3/24/2010 6:27:38 PM
From: Crimson Ghost	2 Recommendations Respond to of 116555

Th dollar soared not only because of Europe troubles but also because of a sharp rise in treasury yields. The market be be rethinking the meaning of "low rates for an extended period".

To: mishedlo who wrote (109895)	3/24/2010 8:25:57 PM
From: Haim R. Branisteanu	1 Recommendation Read Replies (2) \| Respond to of 116555

Hi Mish - the USD has little to do with fundamentals it is more about carry trades which where put in place a year ago. Would agree that the EUR/USD at 1.5o was overvalued but now the EUR it is undervalued. Most European would like to have it just at present levels as this will give them an edge of 5% or so over the US in labor costs As to Portugal their finances are far superior to the US and same with Spain. As a hint budget deficit in the US is over 1,750 billion and Portugal something around 15 to 16 billion or 6.5% of GDP It is all a political brinkmanship and I suspect orchestrated by the US so that China should continue buying treasuries. As it stand now the German and French are quite happy from the strength of the USD - orders are flowing in - their economies are recovering faster than the US - see the recent economic reports including those of today It is all about hype and manipulation just as simple. Some times it is better to look also at fundamentals and compare