Dollar Pounds Euro – Again

Currency

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.

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