Currency issues continue to affect non-$US areas
Macroeconomics
The world of general economics has not delivered many hard facts of particular interest in the past two weeks, but in general the global economy is still on track.
The main focus of interest was the G8 (G7 plus Russia) meeting in London and the decision made by the banks in Europe and America about the development of interests. Basically, everything went as was expected. The FED increased interest rates by 0,25%, while the European Central Bank left rates unchanged. Consequently, the gap between the interest rates for the US dollar end the euro is now widening. As a result of this the US dollar continued to appreciate against the euro and closed the session above the mark of 1.30. However, those who think this is something special, must consider that the high level of the euro only lasted a few days towards the end of 2004 and 1.30 is just about the statistical average for November 2004.
