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).
The next chart is of the Deutscher Aktien Index, or DAX, which is Germany's blue-chip stock index. The DAX has been a strong performer over the past year and is currently trading at record highs. An ETF that closely tracks the price movement of the DAX is iShares MSCI Germany Index ( 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.