BAD BET

Dollar higher as investors eye US growth (Neil Dennis, August 18 2003, Financial Times)

The dollar was close to its high point of the month on Monday as investors shrugged off Friday's muted session and focused on last week's US data suggesting continued signs of recovery.

With few data releases due for this week, investors are likely to consolidate dollar gains after last week's slew of upbeat reports. Retail sales and industrial production both surprised on the upside, and deflationary fears were eased by rising consumer prices. Along with improving growth, reported in the previous week, indications remained for a strengthening US currency.

It's been fun while it lasted, but if currency values are basically bets on the economic future of the countries concerned, there was no way the dollar could stay so low against the Euro. Europe's future is too bleak and ours too bright. Posted by Orrin Judd at August 18, 2003 9:15 AM