As of this afternoon, sentiment towards a strengthening US Dollar has appeared to grow weaker. With reports piling in from Europe about going short on the USD at all costs to halt the EUR's plunge, some investors have taken heed and appear to be putting pressure on the greenback. But can this short-term fix do what is needed to halt the EUR's decline?
The broader concern among the Euro-Zone appears to be the pace at which the EUR has fallen following the announcement of a regional bailout package last week. While a weaker EUR was viewed as a boon for manufacturers and other businesses, the bigger picture has many worried that the pace of the decline represents something more sinister. Should confidence in the EUR continue to drop, the threat of dissolution of the European Monetary Union (EMU) appears to gain momentum and this poses problems beyond the current financial crisis.
But signs of progress appear to be underway as of this afternoon's trading sessions. The plunging value of Crude Oil was halted at $70 a barrel and the price appears to be correcting strongly. This commodity has even recovered back to $71.75 a barrel as of 12:00 GMT. Gold and Silver prices have also come down somewhat, highlighting the possibility of a weakened US Dollar going into the end of the day's trading.