Justin's weekly commentary - Changing sentiment towards the Euro?

I am indebted to Chris Charlton from the foreign exchange specialists, Centa Asset Management in Frankfurt who regularly produces fascinating views and opinions on the varying strengths of the differing currencies. He has, in recent months, been correctly positive on the dollar especially after the main effects of the second US Quantitative Easing (QE2) programme had passed. However, he notes with some concern that the Fed will continue to expand its balance sheet in order to try and keep the economy moving and afloat, and considers what effect this may have. The US, of course, has the great benefit of being the current holder of the world’s reserve currency. Whilst this is sustained, with some 64% of global reserves in currencies in US Dollars, then in effect they can keep printing the stuff so long as - not really “in Deum credere” but rather “in pupa confidimus” - a bad translation of “trust in the dollar”. Read the full article