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Why is the euro getting stronger?

Discussion in 'Economics and Financials' started by maynard, Apr 28, 2011.

  1. maynard

    maynard Who, whom?

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    I think its the lesser of two evils right now

    Sent from my DROID2 using Tapatalk
     
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  2. Miamian

    Miamian Senior Member

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    I track the values of the dollar, euro, and shekel on a continuous basis. I do that primarily because I have a choice of currencies, but I need to convert it to shekels.

    I had thought that the euro would weaken with the EU having to bail out Greece and Portugal. As I've said many times, I'm very weak in the area of economics, financing it, etc.
     
  3. Vendigo

    Vendigo German Gigolo Club Member

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    The euro isn't getting 'stronger' - the dollar is getting even weaker. Right now, investors in Europe and Asia more or less openly question the credit worthiness of the United States. They stay away from US government bonds like they could catch the plague. And with Obama's current budget plans, US national debt is about to climb to a point not even Greece or Portugal can compete with. The stark reality is that the US are more heavily indebted than any bailed out Euro country - and there's no end in sight.

    Meanwhile, most of the euro bail out - while massive in theory - simply consists of interest free loans. Those loans don't compromise the credit ratings or debts of the strong euro countries; essentially, the euro could survive a collaps in Greece, Portugal or Ireland because the strong euro states are still in a comperatively good shape.
     
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  4. Miamian

    Miamian Senior Member

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    How did the order get switched?
     
  5. maynard

    maynard Who, whom?

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    no idea. kinda odd. vendigo is probably right. im still in the learning phase of tracking markets and i haven't gotten into currencies yet. but i will say that depending on where it is trading (i would have to stare at a graph) it could just be at a temporary high and start correcting itself
     
  6. maynard

    maynard Who, whom?

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    i just took a quick look. dont hold me responsible lol, but i think its going to go up more, at least for a little while.
     
  7. Stringer Bell

    Stringer Bell Post Hard, Post Often Club Member

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    Short answer: American interest rates are still low. Europe's are much higher, which makes it more attractive for the time being. Anyone who tries to give you a political answer is misguided.
     

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