Dollar trading at a record low against the Euro, Time to start preparing for a early Haloween this year?
The weakening economy has started to signal the mounting pressure on the public ; now that the Dollar has reached its record low against the Euro( currently trading at 1.54$ for 1 Euro) is it high time to stop thinking and really start to worry about where our economic situation is heading? According to Brian Dolan ,research director forex.com; there is no “sign the dollar is finding a bottom here”. The economy , which most argue is already in a recession, will only head to a stronger fears of inflation, which has made many investors very skeptical of long term trading and longing after short term gains to cover up from massive losses. This was noticeable in Wednesdays Market where many investors were quickly raking in their profits after Tuesdays massive gains ( Dow was up 417 points ) upon hearing the news of the falling Dollar and of Crude Oil surging to 110$ a barrel.
A true Business man however, always seeks to crunch out some profit in good or in bad times, ( call it the Business man syndrome if you like) very much is true about the current situation. One hand, a weaker dollar makes it hard for investors to invest in foreign markets and forces consumers to pay more for imported goods, but looking at it from another view makes these fears seem extremely overblown.
First of all, a weak Dollar makes it easier for foreign consumers to purchase American made goods, making the export business extremely profitable, much of it having to do with the fact that competition of foreign vs. domestic goods abroad is virtually diminished . The American companies don’t have to lower t ...