May 26, 2005

HOW ARE THOSE BASICS LOOKIN'? (via David Hill, The Bronx):

Euro falls to 7-month low vs broadly-robust dollar (Dhara Ranasinghe, 5/26/05, Reuters)

The euro fell to a seven-month low against the dollar on Thursday on persistent worries that France will reject the EU constitution in Sunday's referendum, while the dollar was well bid before U.S. economic growth data.

Europe's single currency fell as far as $1.2517 after London's Times newspaper reported French centre-right leader Nicolas Sarkozy had said in a private meeting with ministers that the vote was "lost".

Sarkozy's spokesman denied the statement and this gave the euro a reprieve. But uncertainty over the French referendum and expectations that data at 1230 GMT will show an upward revision to first-quarter U.S. economic growth prevented the euro from making a sustained comeback against a broadly-firm dollar.

"The story in the Times about Sarkozy is another kick for the euro and an underlying theme in the last few weeks is that the French and Dutch could reject the EU constitution," said Chris Gothard, currency analyst at Brown Brothers Harriman.

"But the main story recently has been the different growth stories in the U.S. and euro zone and today the market is expecting a healthy upward revision to U.S. GDP and this is giving the dollar a boost."


Meanwhile, the Democrats are preparing to stake their '6 campaign on making our economy more secure...like Europe's!

Posted by Orrin Judd at May 26, 2005 9:16 AM
Comments

I doubt if any Democrat would be that dumb. Clinton certainly used Euro envy in '92, but things are different now, and the respective growth numbers would be hung around the fool's neck like a donkey collar.

Sounds liie Sarkozy is getting positioned for the post-vote fallout.

Posted by: jim hamlen at May 26, 2005 9:43 AM

The Intrade odds on a French Yes Vote are sinking. As of this posting they have dropped to 28.1/32.8 Until Yesterday they were in the low 40s.

Posted by: Robert Schwartz at May 26, 2005 10:39 AM

So, did Buffet and Gates and possibly Soros lose more money????

Posted by: Sandy P. at May 26, 2005 12:14 PM
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