Where did all the love for the EURO go?

[Jaggy001]

Originally Posted by k374

Euro Falls to Lowest Since Lehman as Breakup Concern Increases - Bloomberg.com

German Chancellor Angela Merkel said that Europe is in a “very, very serious situation” despite a rescue package for the region’s most indebted nations.

“The euro is doomed,” said Andrew Wilkinson, senior market analyst at Interactive Brokers Group LLC in Greenwich, Connecticut. “It’s like a clown without its makeup. The strains among the partners are becoming clear and it’s becoming harder to see global growth not being threatened by this.”

The forecast for the shared currency was reduced to $1.14 for the middle of next year, Alan Ruskin, head of foreign- exchange strategy at RBS Securities in Stamford, Connecticut, wrote in a note on May 13. The euro could test the key level of $1.1650 by year-end, he said.

Funny how all those saying the Euro is doomed are sitting in the USA

[k374]

Originally Posted by Jaggy001

Funny how all those saying the Euro is doomed are sitting in the USA

why should it matter where we sit, it's just an observation of the facts and analysis based on that. Let me guess, you are from the EU?

[Jaggy001]

Originally Posted by k374

why should it matter where we sit, it's just an observation of the facts and analysis based on that. Let me guess, you are from the EU?

Nope, I am in the USA. I just don't see the Euro going away and I note that nobody in authority in the EU is suggesting that it might go away.

[gwynedd1]

Originally Posted by Jaggy001

Nope, I am in the USA. I just don't see the Euro going away and I note that nobody in authority in the EU is suggesting that it might go away.

Hi Jaggy001,

I think the problem is not that its going away but that we will see more of them.

[user_id]

Originally Posted by Sandpointian

The press down played it, but the move by Italy to go with austerity over the Greek and Spanish approaches was very promising.

Promising for who? Germany? Its hard to see how its promising for Italy.

[user_id]

Originally Posted by gwynedd1

I think the problem is not that its going away but that we will see more of them.

Yes, if the PIIGS say on the Euro this is just about the only way to avoid deflation and its resulting high unemployment. The PIIGS could devalue in real terms but stay stagnant in nominal while the North inflates. It does not seem like the ECB has any interest in doing this though.