|Currently, Euro Trades At About 1.15 To The Dollar|
The Italian government has no intention of backing down from their budget stance despite threats from the ECB to provoke a Greece-style banking crisis if the Italians don't yield. This should be crushing the euro. Ironically, in many ways, a great deal of the recent support for the euro has been generated as a reaction to the Trump administration's unpopular actions such as unilaterally reimposing sanctions on Iran. Acts like these are eroding the dollar's global appeal. Trump’s unilateralist approach to foreign relationships is reshaping the world in profound ways by undermining multilateral institutions. This means other countries see this as an opportunity to develop new geopolitical capabilities which play out in the currency market.
|His Detractors Find Trump's Logic Challenging|
|The Dollar Remains The Only "Real Option"|
It is simply not a case of many countries feeling they must question their bonds with America and whether they can continue to regard the United States as a reliable alliance partner but the pressures of a changing world that are heightening concern of currency valuations. Like all fiat money, the dollar is nothing to brag about. however, at this time the other options are even less compelling. The major Central Banks being well aware of how devastating currency moves can be have gone out of their way behind the scenes to stabilize an unstable situation which they created with a decade of QE policies.
The argument that currencies are trading in a false paradigm extends past simple manipulation and is bolstered by their being sheltered from the storm of volatility by existing in a rather closed system in which wealth tends to become trapped. The reality is that after years of doing "What Ever It Takes" Draghi must be at wit's end. No real solutions exist for the Euro-zone as it confronts the grueling challenges before it of remaining competitive in the global marketplace and the political unrest brewing within its borders only complicates the task.
Footnote; For more on the euro see visit the link below.