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$1.69 Dollar/euro Rate By September Warns Citigroup

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Euro May Be Poised for `Explosive Breakout,' Citigroup Says

By Jamie McGee

July 2 (Bloomberg)

The euro may be nearing an ``explosive breakout,'' reaching record levels against the U.S. dollar, according to a Citigroup Global Markets Inc. research note.
The trading pattern, including a so-called double-bottom that tested lows, resembles the one before Feb. 26 that preceded the surge to $1.6019 per euro, analysts Tom Fitpatrick in New York and Shyam Devani in London wrote in the note today.
`` We cannot help but feel that things might be about to get very bad again,''
the analysts said, referring to the possible combination of falling bond yields and rising oil prices.
The exchange rate may approach $1.69 per euro by September if previous patterns are duplicated, the report said...
...``While we believe it to be misguided, the ECB will raise its rate tomorrow and one cannot help feel that the rhetoric in recent days suggests that we may be surprised by elevated hawkish language and the suggestion of more to come,'' the analysts said, referring to the European Central Bank meeting.
The ECB is forecast to raise its benchmark lending rate by a quarter-percentage point, to 4.25 percent, according to the median estimate of 58 economists Bloomberg surveyed. The Federal Reserve left its key rate unchanged at 2 percent on June 25.

Apologies if posted before. Of course, the ECB did raise rates in the end.

If the rate does go to $1.69 by September, the dollar would have lost an enormous amount of value in twelve months. More massive disruption in finance, commodity prices, oil prices and more to come then. :(

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House prices in most parts of Europe are half those in the UK and yet banks in europe are turning down 6 out of ten new loans.

No wonder the GBP and the USD is going down and if the GBP got back to it's long term average with the USD then the pound would be down to about one euro.

9/11 was Bush's attempt at saving america and it's all going badly wrong apart ffrom the oil cartels GW-Bush controls for his personal profit.

if i was an american i would be stacking up on food and guns ready for all hell to break losse.

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Can someone explain to me why would falling dollar be that bad.

Would it mean cheaper oil for every country, or would price of oil go up proportionally.

If UK Banks have been buying all the toxic sub prime rubbish of the Americans in $, and the $ goes down, would this be a bad thing? or have they lost out because our banks paid good money to buy that stuff and now that asset is falling.

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