Secret Plan to Defend the Euro against the Falling Dollar
November 10, 2009 by goldguru · Leave a Comment
By Peter Cooper, GoldSeek
The European Central Bank has a secret plan to defend the euro against a falling dollar. And it is no secret that the falling dollar is a danger to the euro-zone recovery and exports.
Indeed, the ECB would be in clear breach of its treaty obligations if it did not possess such a plan, so we can be quite certain that it is in place. All we can speculate on is at what point the ECB decides to act.
$1.50 euro
For a long time $1.50 to the euro has been a line drawn in the sand. That line has now been breached. It is therefore wise to expect some action from the ECB in currency markets before very long.
Market intervention will be the response to the falling dollar. It is unlikely that the dollar is going to be allowed to fall through the floor.
Most likely a secret plan to support the dollar was a big part of the G20 summit rather than the declared statement about the continuing stimulus packages that are a big part of the problem.
Those betting on a falling dollar now in financial markets could be in for a rude awakening. The dollar has fallen to a 16-month low, how much further can it go?
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