Cash Glut in Eurozone Drives Dollar Demand

Post by impendingchange » Thu, Dec 16, 2021, 8:52 PM UTC

pjc50 wrote: post #57

pezzana wrote: post #27

> Cash-rich eurozone banks are rushing to change their euros into dollars by the end of the year, driving a key measure of demand for the greenback. > The interest rates on three-month euro cross-currency basis swaps, in which one party borrows a currency and lends their own in return, have turned more negative in recent weeks. That means traders in Europe are paying a premium to exchange excess euros for dollars. De…

> gold is about the same price in nominal terms that it was ten years ago Wouldn't that indicate it working as an inflation hedge? :) But yes, you're absolutely right, I bought some gold half-sovereigns as a chaos hedge back in 2008 and occasionally note the lack of significant action in their price. Nice shiny objects, though. People talking about inflation on the internet are mostly stopped clocks endlessly repeati…