Falling dollar; interesting CNN interview.

B

bothar

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There's a very interesting debate in the US about the dollar falling. Came across this CNN interview (Nov 1st) on youtube, well worth a look. I had planned to invest in dollars when it hit 1.50. Having watched this I'm not so sure anymore...they reckon there's worse to come. Is $1.75 possible?

www.youtube.com/watch?v=-w5pSm_BLGU
 
On the news last week peter mandleson the EU trade commissioner had a meeting with the chinese about revaluing the chinese currency. This is because the EU now has the biggest trade deficit in the world with china even bigger than the US. The main reason for the US trade deficit is because of chinese imports and this has been the reason for the falling dollar. If the EU now has an even bigger trade deficit (albeit with china)how long can the euro remain at these levels against the dollar. I think we have reached the peak of the euro/dollar valuations although i also thought the same at $1.35. I think the ECB will have to reduce interest rates and this could cause a dramatic fall in the euro maybe back down to $1.25.
 
Despite the high euro and the trade deficit witn China, the eurozone OVERALL still has a current account surplus.
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very interesting Bothar . I was just about to make an early large payment in dollars but am thinking i might hold off till the summer now
 
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