Prior to the G7 confab on Oct. 19, some European finance officials had been complaining about the high level of the euro (EUR), which led some market analysts to speculate the G7 would adjust its language regarding exchange rates. However, the recent G7 meeting saw little in the way of fresh news or direction for global currency market traders.
“In their statement, Ministers remained silent on the recent weakness of the U.S. dollar, restricting commentary to the previously agreedupon line that currency values should be determined by market forces” says Robinson. “The release of the G7 communiqué from Oct. 19 undermined the position of any currency trader betting on a deviation in the long-standing U.S. policy to refrain from supporting the currency’s value.”
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