The Strong, Weak Dollar

Global demand for the dollar strengthens the dollar which weakens the U.S. economy which weakens the dollar. Got it?

How many dollars for these euros?

Photographer: Simon Dawson

Currency markets work on pretty short time horizons. Remember when Harvey Schwartz, the chief financial officer at Goldman Sachs, said the Swiss franc's sudden rise against the euro in January was "something like a 20-plus standard deviation move"? He couldn't have possibly meant that it was the kind of thing that could only happen once in several trillion or quadrillion or whatever number of years, given that the franc had experienced nearly as dramatic a rise and then fall against the euro in 2011.

To continue reading this article you must be a Bloomberg Professional Service Subscriber.