I was told the EUR/USD has to do with short term interest rates based on U.S. DOLLAR deposits in overseas banks. I wish I could understand this but maybe some of you wise economic pundits can explain it further?
More on the LIBOR and USD INTEREST RATE in OVERSEAS BANKS...
LIBOR or ICE LIBOR (previously BBA LIBOR) is a benchmark rate that some of the world's leading banks charge each other for short-term loans. It stands for IntercontinentalExchange London Interbank Offered Rate and serves as the first step to calculating interest rates on various loans throughout the world.
