Monday, October 6, 2008

Dollar Strengthens Against Euro as European Economic Fears Mount

Mounting fear that the European market is about to partake in similar results as the U.S. market, has the euro continuing to fall against the U.S. dollar. Today it dropped to a 13-month low of $1.35 against the greenback.

The problems in the European market have been slower to emerge than in the U.S., and now it seems it's about to participate in the same problems.

This has continued to pummel commodities as investors are now eyeing dollar-denominated short-term paper like U.S. Treasury bills.

With the dollar continuing to strengthen, it has left gold in a much less important position than it would usually hold when people are looking for a safe haven for their capital.

Until the U.S. dollar drops again, this will continue to be the way the market moves overall.

While it's difficult to ascertain, it looks like a significant number of overseas U.S. dollars are being brought back into the U.S. at this time.

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