In Europe Recession Extends

fxpoetry

In Europe recession extends
The rate of employment descends
Their policy makers
Those movers and shakers
Cannot stop the current strong trends

It is all dollars, all the time if you are seeking an asset to buy.  The dollar is at its strongest level overall since July, 2010 having made new 4+ year highs against the yen overnight and 6 week highs vs. the euro.  The proximate cause of the euro’s weakness was consistently weaker than expected Eurozone GDP data, with Germany printing at 0.1%, France at -0.2%, Italy at -0.5%, all three lower than expected, and the EZ as a whole at -0.2%.  This makes 6 consecutive quarters of negative growth in the Eurozone, an ignominious new record.  While the market seems convinced that Draghi will act to cut rates again if things get worse, for the time being, the contrast between the US story, where data has seemed…

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