Wednesday, February 14, 2007
The Euro is cruising ahead this morning, with the March EuroFX up 103 points all the way up to $1.3155. The Forex market is clearly saying that first estimate of GDP that showed 4th quarter growth of 3.5% was total bunk following the trade deficit data yesterday and the inventory data on Friday. Many economists are starting to talk about a more likely scenario of 2% to 2.5% U.S. GDP for the 4th quarter. Good grief, what could that mean about this quarter and more ominously the 2nd quarter?? Also boosting the Euro, yesterday's stronger than expected Eurozone GDP.