The dollar has been declining and gold has been rallying. This makes a good amount of sense considering the investor public is pricing in a second round of quantitative easing.
But wait, what about our Euro sister. I can understand when the Aussie Dollar (AUD) rallies like a bandit as commodity prices rally and borrowers are punished while savers are rewarded, but why is the Euro playing with the $1.40 level?
Germany has come out with some great economic news, but since when did we say that Portugal, Spain, Greece and Ireland were going to be carried to safety by German citizens? Did I miss a major news story? A country with a credit default swap spread greater than 500 is nothing more than rated junk, yet the currency seems to have been given a bath in holy water.
Nowhere will you find me singing the praises of the US dollar, but you certainly will not catch me converting all of my dollars for Euro’s at a $1.40 exchange rate. I might as well pay 40 cents in tax to the Greek government.