The Wall Street Journal detailed Europe’s flight of capital in “Torrent of Cash Exits Eurozone – Money is going to dollar, currencies of smaller countries.” This unnerving situation rarely (never?) occurs in a major, developed county. From the article (underlining is mine):
A major shift in the flow of money around the globe is driving down the euro at a rapid clip, boosting the U.S. dollar and leaving smaller countries to struggle with the consequence of an extraordinary flood.
A wave of cash is leaving the eurozone, where returns on safe assets are infinitesimal, if they are positive at all, and headed to the U.S. and other refuges such as Denmark and Switzerland.
Europe’s common currency has fallen 22% against the dollar in less than a year, from $1.39 to $1.08. The euro touched a 12-year low of less than $1.05 this month. The European Central Bank is holding interest rates, while the U.S. Federal Reserve is looking to raise them—a combination that pushes the euro down against the dollar.
http://www.forbes.com/sites/johntobey/2015/03/25/capital-flees-europe-and-fed-warns-time-to-trim-stocks/
A major shift in the flow of money around the globe is driving down the euro at a rapid clip, boosting the U.S. dollar and leaving smaller countries to struggle with the consequence of an extraordinary flood.
A wave of cash is leaving the eurozone, where returns on safe assets are infinitesimal, if they are positive at all, and headed to the U.S. and other refuges such as Denmark and Switzerland.
Europe’s common currency has fallen 22% against the dollar in less than a year, from $1.39 to $1.08. The euro touched a 12-year low of less than $1.05 this month. The European Central Bank is holding interest rates, while the U.S. Federal Reserve is looking to raise them—a combination that pushes the euro down against the dollar.
http://www.forbes.com/sites/johntobey/2015/03/25/capital-flees-europe-and-fed-warns-time-to-trim-stocks/
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