Wednesday, August 23, 2017

Euro Hits Eight-Year High Against Pound

Overnight,  the euro hit its strongest level against the pound sterling in eight years to 92 pence.

The euro has climbed more than 10 percent from a low for the year of 83 pence back in April, and has gained 31 percent since a late 2015 decline to 70 pence.

Meanwhile, the U.S. dollar has also been in a steady decline on foreign exchange markets since January.

The WSJ Dollar Index, which measures the dollar against the currencies of major trading partners, is down about 8% since the beginning of the year, including a more than 2% drop over the past month.

Its decline has been especially pronounced against the euro,  declining by more than 11%---the decline this year worse than the decline by sterling against the euro.

It is a race to the bottom for all these currencies with the dollar and sterling taking lead positions.

This is not going to end any time soon. Buy gold.


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