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I read the same so I'm surprised that the Euro rallied and is holding up pretty well with Greece on the brink of defaulting. That .9 is was based I believe on European nations freeing up money (Quantitative easing) and the Fed raising the interest rate.
I read the same so I'm surprised that the Euro rallied and is holding up pretty well with Greece on the brink of defaulting. That .9 is was based I believe on European nations freeing up money (Quantitative easing) and the Fed raising the interest rate.
The USD should fall as much until the current account ist balanced. 1 Euro = 1.40 to 1.80 USD would make a lot of sense.
Why do you think it's 1.10 instead of what you think it should be 1.40 to 1.80? I believe the market knows more than any one person but just wondering why you think the market is wrong.
I personally wouldn't care if it goes back up to that 1.60 range...it would make my condo in Spain that much more valuable if/when I decide to sell it.
I understand that the USA halted QE on 29 October 2014. So I think it is premature to say it won't start again in the USA.
Exactly 113 days ago Goldman Sachs predicted the euro would reach parity with the dollar in six months. That leaves them 9 weeks until their forecast time runs out. It doesn't look good as Euro has moved up by about 5%.
I understand that the USA halted QE on 29 October 2014. So I think it is premature to say it won't start again in the USA.
Exactly 113 days ago Goldman Sachs predicted the euro would reach parity with the dollar in six months. That leaves them 9 weeks until their forecast time runs out. It doesn't look good as Euro has moved up by about 5%.
However, almost anything is possible.
QE stopped in Oct 2014 but it had been coming to an end for sometime nearly a year or more prior to. Starting QE again anytime in the near future would be such a radical turn from the current stance I don't see it happening anytime soon
Why do you think it's 1.10 instead of what you think it should be 1.40 to 1.80? I believe the market knows more than any one person but just wondering why you think the market is wrong.
The market players want to make as much profit as possible. They don't care whether an exchange rate makes economically sense or not. There is a lot of uncertainty in the Eurozone. Some Eurozone countries have abysmal economies. Many countries and many market players aren't interested in a week USD.
In my opinion the exchange rate is responsible to balance the current accounts. The U.S. Treasury Secretary is constantly blaming Germany for his huge trade surplusses. But he doesn't understand that the main reason for this is just the completely overvalued USD. At the current exchange rate it doesn't make much sense to buy American made products. The products often lack in design and are rather overpriced. When so many domestic made products in the U.S. cost (at the current exchange rate) nearly double what comparable German made products cost in Germany, of course, there is something wrong with the current exchange rate.
The current disparity between the USD and the Euro and other currencies will of course lead to new rejections in the world economy.
In my opinion the exchange rate is responsible to balance the current accounts.
Exactly. The US has been running a large deficit for 35 years, and a very large one the last 10. The overvalued US$ is what has killed domestic production, and escalated fiscal and private debt, and it now appears it will get worse before it gets better.
In the Eurozone the problem is that some countries have surpluses and others have large deficits, and since they are stuck with one currency, the exchange rate can't change to balance it.
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