The euro is the second largest international reserve currency as well as the second most traded currency in the world after the United States dollar.Regardless of the poor fundamentals and ongoing crisis in Europe, these two important facts cannot be denied – and one has to consider that by way of “default” – any suggestion of “dollar weakness” must also consider the opposite – EUR strength.
For many this doesn’t make much sense.In that the majority of us, see the EU Zone crisis as being much worse than that of the U.S – and that if anything the Euro should be plummeting and the dollar rising. It doesn’t work that way. By simple way of “who’s printing press runs faster” – in the current environment of massive central bank intervention – it stands to reason that (in attempt to bring down the cost of their debt) the U.S will continue to devalue the dollar at all costs – resulting in a higher Euro.
Take it for what it is, and hopefully find a way to profit from it. Come to terms with the fact that “these days” a whole lot of things don’t make sense.