The French will be voting on the European Constitution and a negative vote will affect Europe. This has stopped the Euro which is stil at 1.29
Reports from Euroland are not good and we are waiting for the latest data re US exports to Europe and see how much these have declined.
The DOW lost 1.3% on receiving the news that the US GDP had dropped from 3.8% to 3.1%, comparing the Oct-Dec quarter with the Jan-March 2005, data. An interest rate rise is expected.
Price pressures increased with the GDP Deflator rising to 3.2% from 2.3% in these quarters.
The GDP was boosted by an increase in inventories. (Please note that the true GDP number will be much less than this).
It will be interesting to read the next GDP number.
Russians have stated that instead of being 10% of the Reserves, the Euro will be 30%.
USD 84.36 Gold drifting to 431.3, Silver 6.94 Oil 51.83
