Wednesday, October 19, 2011

The EU Situation, the Dollar and the Euro


The chart above is a simple line chart of the dollar and the euro over the last few months.  Notice the near inverse relationship, especially starting at the end of August.  At this time, the dollar really became a safe haven for traders while the euro was in a clear "risk off" mode.  That perception has changed over the last few weeks as it appears Europe may be getting their act together a bit, making the euro more attractive and the dollar less so.