Euro's instability tumbles stocks by Claudia Sonea

USA dollar is affected by the euro’s instability and by the fears over the Eurozone's debt. The American dollar dipped in spite of the bright OECD report that not only presented an increase in sales of new homes and in orders for manufactured goods, but also forecasted an increase in global growth. Analysts consider that the market is tracking the euro and the debt crisis that hit EU countries scared off investors. Worries that there could be a similar credit crunch to the one that sparked in US in 2008 and led to the global recession, determined investors to avoid risk as! sets and chose safe-haven investments like US government bonds. The Eurozone crisis is making the dollar more powerful on the market, thus American companies are paying less for taxes to other countries and the foreign manufacturer pay more to sell their products on US markets. Why is then the dollar so affected by the euro’s dip on the market? Moreover, the question that should remain is why US would support the instability between North Korea and South Korea if it is hurting the dollar. Instead of trying to mediate the conflict and get to an agreement between the two countries, Obama administration is fueling the misunderstanding. As the EU has more countries and thus more economies to look for, the situation might be unstable for the moment, but it could change due to the new EU and IMF plan to bailout countries hit by the debt crisis and to the new austerity measures. Stay c! onnected and pray for the people who will get suffer the auste! rity mea sures.

related story (sgx17401): http://www.france24.com/en/20100526-markets-rise-oecd-predic...

by Claudia Sonea for Cantell TV (http://cantell.tv)

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