Euro Oil Price At New High
Most commodity prices including oil,.gold and silver, are now after this week's rally close to or at the highest level since the Fed started to hint at QE2.
What few have noticed however, is that in terms of euros they are now much than during the previous week's highs, because while the dollar price of commodities are close to their highs, the dollar price of the euro at $1.342 is still, despite Friday's rally, well below the November 4 peak of $1.424. As a result. for example the price of oil in terms of euros is about 6% higher than a month ago. By contrast, the price of oil in terms of dollars is roughly unchanged.
The big drop in demand for euros because of the debt woes thus seems to be more than outweighing the recent stagnat euro area money supply growth.