Warren Buffett“A public opinion poll is no substitute for thought.”
Adlin Sinclair“Success is a welcomed gift for the uninhibited mind.”
Euro Rebounds on Abu Dhabi-Dubai Bail Out Plan
After falling consistently versus thegreenback intheend ofthelast week, theEuro posted atimid rebound andalso gained versus several
currencies, asconcerns regarding Dubai’s debt eased after Abu Dhabi announced arescue plan forits brother emirate.
Theeuro benefited today onanAbu Dhabi announcement stating that $10 billion will be used tohelp Dubai tocope with its debts, paying creditors andcontractors, calming down European financial markets, asmultiple banks inthebloc have asignificant number ofloans intheGulf region, extremely correlated totheDubai World’s problematic debt situation. Theyen was one ofthefew currencies that managed togain significantly versus theeuro asamanufacturer confidence report intheAsian nation came better than expected, attracting investors topurchase
assets.
TheDubai bail out offered byAbu Dhabi helped theeuro tosharpen its corrective movement versus thedollar after aconsiderable drop last Friday. European banks have large quantities ofmoney invested intheDubai region, andasconcerns cool down regarding unpaid debts, confidence rose intheregion, consequently favoring theEuropean common currency in
markets.
EUR/USD traded at1.4638 from anopening rate of1.4610 yesterday. EUR/JPY tumbled to129.45 from 130.14.
If you want tocomment ontheEuro’s recent action orhave any questions regarding this currency, please, feel free toreply below.
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