The US dollar got clobbered today as interest rates will be held down by the Federal Reserve for some time to come, as inflation remains low for the time being in the U.S.
Questions as to whether or not we've ever escaped the recession are increasingly being asked, as no jobs are being created in the private sector and housing remains in terrible condition, and is expected to worsen.
We still haven't seen the full effect of the commercial property market yet either, which is supposed to be in trouble over the second half of 2010.
The illusion the sovereign debt crisis in Europe has been handled because Greece has been able to auction bonds in the private markets is a real stretch, but that has strengthened the euro some for now, another downward pressure on the dollar.
Based on Wal-Mart (NYSE:WMT) starting a food price war to draw consumers back to the store, food prices dropped strongly in June, as they and competitors fought for foot traffic.
Consequently, the producer price index sank by 0.5 percent, after a 0.3 percent fall in May. Economists were said to be looking for 0.1 percent, but to me should have known better with the move by Wal-Mart and its competitors.
The dollar fell to 1.2910 against the euro, its worst showing in over two months.
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