Euro strengthening, dollar weakening, foreign governments shifting reserves to Euro

The Euro continues to strengthen as the Central Banker of that region indicated yesterday they are on “permanent” alert with the risk of inflation, raising speculation they may hike rates by 50 basis points. As of yesterday, one U.S. dollar will get you 0.79 Euros. This compares with 5-years ago when one U.S dollar would get you 1.15 Euros. In other words, your U.S. dollar gets you 30% less than what it did five years ago. But two-thirds of world official foreign-exchange holdings (reserves) are in U.S. dollars (according to YaleGlobal,) while the Un ...