Monday, November 9, 2009

Added world currency exchange rates

Added a link to FXstreet.com major currency exchange rates.

I suspect the risk of a currency dislocation, such as the the one in Iceland last year, will increase in the first half of 2010. The trigger event could be the end of Fed MBS purchases, but it could also come from a major devaluation of a small Euro state currency that spreads to a major currency.

It could also happen if the Fed tries to unwind some of its questionable assets or raises rates.

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