Germany pushing for harmonization of law for better trade and investment flow between US and Euripe – US –Euriope free trade zone? What is the effct on dolla, euro and gold?
Bernard Snyder
Jan. 3, 2007

Angela Merkel, German chancellor is pushing very hard for harmonizing the laws between US and Europe that will boost trade and investment flow between US and Europe. It has very long term significance. US and EU may come together under the leadership of German chancellor Markel to create the largest union of trading blocks to counter that of Asia.

In the next ten years, it will be clear that US and EU need to work together as a partner to counter Chinese, Indian and Japanese trade and investment challenge. Some international thnik tanks believe that eventually a “some sort of an harmonized “ Free Trade Agreement will create a huge trading block.

What is the effect on Dollar, Euro and gold? As EU and US comes together with the notion of a free trade zone, the currency parity will be in focus. As US is a very large market, the Euro and Dolalr may reach parity in the long term. That is bullish for dollar, bearish for gold (in terms of dollar) and also bearish for Euro at the current level.

A massive slow down in Eurozone and somesort of the same in North America will bring US, Canada and Europe together. A tarding block containing EU, US and Canada can be very bullish for US Dollar and Canadian Dollar. It will also be beneficial for EU because the dependance of Russian energy will diminish as Canada will become the primary energy source.

Germany pushing for harmonization of law for better trade and investment flow between US and Euripe – US –Euriope free trade zone? What is the effct on dolla, euro and gold?
Bernard Snyder
US and EU may come together under the leadership of German chancellor Markel to create the largest union of trading blocks to counter that of Asia.
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