What’s with the dollar?

/rant mode on.

The pound is at 1.93 to the dollar, and the euro is above 1.30.

“Incredibly wild night of action in FX markets as both euro and pound verticalzed in thin holiday trade to take out multiple option barriers and triggered a torrent of stops. Once the EUR/USD crossed the psychologically important 1.3000 level it invited massive inflows of speculative capital as momentum players, option sellers and wrong footed dollar bulls all scrambled for euros sending the pair higher by 70 points in a matter of seconds. The pound also rallied hard taking out the 1.9300 barriers as it made 20 month highs.”

(and is just a few cents away from it’s highest level in 13 years when it tumbled from 2.00 to about 1.50 after George Soros “shorted” the pound resulting in it being pulled out of the Exchange Rate Mechanism [fore-runner to the Euro] )

If you’re in the USA, and you earn money in dollars and spend money in dollars, this is of no consequence to you. But for those of us marketing online, selling in dollars, but converting the dollars into our currency to be able to spend them, this is painful.

/rant mode off.

:-)

Posted in Current posts by Neil_Shearing