QuickPick on Currencies
Questions remain whether or not EU resolution to crisis means stronger or weaker Euro.
While one likes to have a stable currency it would be VERY advantageous for Europe to be trading Euro/$ at 120 v 140
Higher or Lower?
Likewise its seems as though the latest round of QE based squawking from the Doves at the Fed (Turillo/Yellin etc) are designed to weaken the USD v its relative crosses (euro and yen).
The real highlight here is that the G20 summit is in a week and as economies around the world battle 1) to stay competitive by 2) devaluing their currencies the possibility arises for LESS NOT MORE cooperation between the worlds largest economies.
Note – Yen is at new all time high v. the $ and climbing v. Euro
Bonzi!
The emerging economies have benefited from the recent turmoil with their export markets becoming between 10 -15% cheaper. Unfortunately that tends to be coupled with a significant drop-off in demand.
Coffee? Soybeans anyone?
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