NEW YORK ( TheStreet) -- I have mentioned in various articles this week that investors have been reallocating funds to European markets and out of both emerging and U.S. markets due to the relative stability of European monetary policy.
In the charts presented below I will show the current price action of European assets and the risks responsible for the money flow out of both U.S. and developing economies.
The first chart below is of the euro over the dollar. The euro broke to new highs Tuesday vs. the greenback, moving to more than the 1.34 area. This level has only been crossed twice this year.
An exchange-traded fund that closely tracks the movements of the euro is the CurrencyShares Euro Trust (FXE).(EWG). As U.S. equity indices have corrected lower, and funds have flowed out of emerging markets, strong European equity markets have remained at elevated levels.
Select the service that is right for you!COMPARE ALL SERVICES
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
- Real Money + Doug Kass Plus 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV