Tuesday, May 31, 2005

Oil wins all

The Prudent Investor - seeing too many bubbles: Dollar hits Euro and Yen, oil hits all of them
What has changed the picture the most is the new threat to the Euro that the European constitution will not come into effect. If the Dutch will reject the constitution on Wednesday the common currency is likely to be hit again.
A weaker Euro will in turn burden Europe's economies because of higher commodity and especially oil prices through the exchange rate effect.