What is going to happen with the Euro vs. the Dollar?
In our forecast for August we indicated that the common European currency would still remain weak, but it still would be higher than $1.16. It happened exactly this way. The month was over with $1.22 per 1 Euro. For Euro it is a weak result. Everybody already forgot the end of the last year when Euro was sold for $1.36 and everybody was guessing when it will exceed $1.40 or maybe even $1.50. Everybody thought that it is the only saving grace for the tremendous U.S. trade deficit — Washington will export more and import less. Some people even suspected Americans in intentional weakening of the dollar for the interests of the national economy. American authorities was responding that they do not regulate dollar rate and the trade deficit is based on the fact that the European do not buy American goods due to the weaknesses of their own economies. As for the Asians, in the eyes of American authorities, they are put artificial barriers on the way of the U.S. imports like, for instance, th
