Friday, February 19, 2010

Dollar Surge on Greece Fears

U.S. Dollar Sovereign Default

Although both faulty currencies, the U.S. dollar has been getting the better of the euro lately, especially in light of concerns over sovereign default be Greece continue.

Another factor is it seems the Federal Reserve could tighten up its money policy a little sooner than expected, also giving the U.S. dollar an upward thrust.

Of course Greece is far from the only concern in Europe, as the PIIGS Portugal, Ireland, Italy, Greece and Spain, are considered to be in a similar situation, with any of them exposed to sovereign default.

While long on talk and short on ideas, other than saying they're prepared to help Greece, there is growing concern on how that could be done, especially if the other exposed countries look to be, or need to be, bailed out as well.

If they collapse, there may no longer be a European Union, or a euro for that matter.

An interesting potential anomaly in all of this is gold and the U.S. dollar may increase in price and strength as a result of all this, making the usual movement of gold in opposite direction of the dollar no longer the case.

U.S. Dollar Sovereign Default

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