[Arkie2]

Your exchange rate info is a little out of date as the dollar has recently strengthened, although nowhere near parity.

Also, I'm curious about the relationship of the currency choice for international exchange as relates to the economical strength of the countries involved. It's pretty obvious the Euro Zone can't compete with the US economy.

[JustDoItAlways]

Demand and supply of US dollars for trade in Oil is miniscule compared to the demand and supply of US dollars for merchandise and investment.

Oil represents about 2% of the daily transactions in US dollars, so the article's premise is bogus.

[bjc]

An additional unanswered question is what the Chinese will do with their currency. If they sell their $$s it will increase the pressure on their currency.

Your general point is well-taken. The overhang on the the Euro is significant. Deficit for deficit we are better off. The currency speculators need but the end of the Iraq War to start dumping Euros, the increase in which has no basis in actual economic growth and other fundamentals of the major EU economies.

So long as the EU keeps trade barriers high two major economic competitors buying Euros definitely is a speculative enterprise.

Bernie

[A. Pole]

It's pretty obvious the Euro Zone can't compete with the US economy.

The trade balance shows that Euro Zone is stronger in this competition.