Sunday, September 20, 2009

U.S. Dollar Drops Against Euro

U.S. Dollar drops to lowest level against Euro in a year

If your one of those that might have made investing decisions based upon the hapless Federal Reserve Chairman Ben Bernanke and his announcement that the recession is probably over, better take a step back and think things through.

With the drop of the U.S. dollar to its lowest level against the euro in a year, it means that a number of investors may have entered into riskier investments based on nothing but Bernanke's unsupportable conclusion. That's why he said it might be over, or it's "technically" over, i.e. from a technical perspective, which sounds to be me like he's covering his rearend for when it's discovered it's a fake recovery and not a real one.

“The dollar will come under further pressure,” said Ian Stannard, a senior currency strategist at BNP Paribas SA in London. “This continuation of the quantitative-easing program will provide further asset-market support. That’s going to lead to dollar weakness as funds flow out of the U.S., seeking higher returns elsewhere.”

The point is, if you're going to make riskier investments, never do it based upon something a Federal Reserve Chairman like Ben Bernanke asserts, as he and others like him are attempting to shore up their reputations and make themselves feel important; a very poor reason to invest in something riskier.

U.S. Dollar drops to lowest level against Euro in a year

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