Dollar Pounds Euro – Again

It seems like I am writing a commentary on the strengthening US dollar every two weeks or so.  Today, the dollar broke through the $1.26 barrier, trading briefly in the $1.25 range, before settling down in the $1.26 range.  Once again, this rate has not been seen in over 2 years.  Technically, the dollar is extremely overbought versus the euro, bought underlying market conditions in Europe, together with the receding price of oil, and overall uncertainty in world markets, makes the US dollar (along with the yen) the safe haven to park one’s money as investors worldwide exit the equity markets.

How low will it go?  At this point, it is anyone’s guess, but I suspect that the bottom could be near, unless another round of cataclysmic economic events occurs.  Then all bets are off.

Paris Prices Continue Their Climb

According to the most recent figures published by the Notaires of Paris, prices for Parisian real estate continued their decade long upward trend, rising by 2.4% for the 2nd quarter of 2008.  On an annual basis, Paris real estate has appreciated 10.4%.  However, a portent of the future may be the finding that the volume of sales was down 15% in the 2nd quarter.  Overall, I think that these findings continue to support my belief that Parisian real estate will generally buck the prevailing trend of price depreciation felt elsewhere, particularly in the UK, Spain and the US markets.  To review the details, you can visit the Notaires website at http://www.paris.notaires.fr.