The FTSE

Gaudion M

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5 Sep 2014
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The euro has reached parity with the dollar today. A big landmark and reflects strength of US given distance from Russia/Ukraine. GBP also going the same way. Some smaller global currency looking very weak.

Interesting that bitcoin also way down.
 

AlgarveBlu

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21 Aug 2005
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The euro has reached parity with the dollar today. A big landmark and reflects strength of US given distance from Russia/Ukraine. GBP also going the same way. Some smaller global currency looking very weak.

Interesting that bitcoin also way down.
It's not the actual geographical distance between the U.S and Russia which is strengthening the USD currency pair but more the aggressive fed hikes in the U.S. base rate with more to come and it is also widely expected that the Eurozone will go into a much deeper recession due to the conflict and subsequent inflationary pressures it is causing.

The dollar is also historically the main currency that appreciates in value when their is a flight to safety from worried investors.
 

Gaudion M

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Joined
5 Sep 2014
Messages
10,729
It's not the actual geographical distance between the U.S and Russia which is strengthening the USD currency pair but more the aggressive fed hikes in the U.S. base rate with more to come and it is also widely expected that the Eurozone will go into a much deeper recession due to the conflict and subsequent inflationary pressures it is causing.

The dollar is also historically the main currency that appreciates in value when their is a flight to safety from worried investors.
True but Russia is the big drag on the EU and other geographically close countries. Turkey is suffering. The US can fight inflation without worrying about gas supply etc so are free to be aggressive with interest rates.
 

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