Thursday, September 1, 2011

Europe going into recession without US?

Quite possible. This morning we got better-than-expected ISM. We also have gotten a generally flat to better econodata this whole week.
It is no surprise that all of European econodata was horrific today. Their austerity is really taking a major toll on the economy. We could just be lagging them by 3-6 months, but it looks like we are bumping along the bottom with no recession imminent. This fact may help the dollar against the euro. Ugly competition continues, I think EUR/USD is heading to 1.41 - 1.40 within a week.

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