Euro stagnating again?

Even though the mixed and weak economic reports last week raised the odds of Fed rate cuts which would in theory put downwards pressure on the dollar, the euro hardly responded, with the March futures closing on Friday at $1.4777.

Far from being bullish on the euro, futures all the way out at June 2009 are priced only at $1.4638, which indicates the dollar gaining strength.

Although foreign exchange "strategists" do a lot of talking about "fundamentals" and how weak the dollar is, the truth is that it is all a giant shell game with speculation and short-term trading as its aim and nothing to do with long-term fundamentals.

-- Jack Krupansky