In This Issue..
* Dollar moves lower...
* China to take a role at IMF...
* US Borrow and spend policies continue...
* Gold sets a new record...
Good day...and what a day it was in the currency markets on Tuesday! The rout on the dollar continued, and was broad based with gains in every currency we trade. The commodity based currencies led the pack, as the weaker dollar fueled a big run up in raw material prices. Reports out of both Asia and Europe signaled the global economy is recovering, and bolstered investors looking for a way out of the falling dollar.
European industrial output rose for a fourth month in August, increasing just below 1 percent from July. From a year earlier, August output fell 15.4%, a big drop but still the smallest YOY decline in 8 months. The Euro area continues to recover 'at a gradual pace' according to ECB President Trichet. The positive news coming from the manufacturing sector is a good sign the European economic recovery will be sustainable....