Comments on: Why isn’t the euro falling even further? http://blogs.reuters.com/great-debate/2012/05/29/why-isnt-the-euro-falling-even-further/ Fri, 24 May 2013 19:36:13 +0000 hourly 1 http://wordpress.org/?v=3.4.2 By: DifferentOne http://blogs.reuters.com/great-debate/2012/05/29/why-isnt-the-euro-falling-even-further/comment-page-1/#comment-45178 DifferentOne Wed, 30 May 2012 20:31:10 +0000 http://blogs.reuters.com/great-debate/?p=12908#comment-45178 Currency markets would probably be less puzzling if all major currencies were allowed to float freely. For example, if the Chinese allowed the yuan to float freely, you'd see the Euro and US dollar quickly plunge in value, compared to the yuan. In the meantime, what can the Euro plunge against? Not the US dollar, as it seems similarly risky, because of the weak US economy and high US national debt. Currency markets would probably be less puzzling if all major currencies were allowed to float freely.

For example, if the Chinese allowed the yuan to float freely, you’d see the Euro and US dollar quickly plunge in value, compared to the yuan.

In the meantime, what can the Euro plunge against? Not the US dollar, as it seems similarly risky, because of the weak US economy and high US national debt.

]]> By: michaelryan http://blogs.reuters.com/great-debate/2012/05/29/why-isnt-the-euro-falling-even-further/comment-page-1/#comment-45119 michaelryan Tue, 29 May 2012 21:35:28 +0000 http://blogs.reuters.com/great-debate/?p=12908#comment-45119 you can't forget how crummy the dollar is looking. The US deficit is around 100% of its GDP - similar to countries in the EU. They are both sick currencies. you can’t forget how crummy the dollar is looking. The US deficit is around 100% of its GDP – similar to countries in the EU. They are both sick currencies.

]]> By: nicfulton http://blogs.reuters.com/great-debate/2012/05/29/why-isnt-the-euro-falling-even-further/comment-page-1/#comment-45114 nicfulton Tue, 29 May 2012 20:37:41 +0000 http://blogs.reuters.com/great-debate/?p=12908#comment-45114 If you take the rotten fruit out of a bowl the average quality of the fruit rises. The prospect of removing Greece and Spain from the Euro SHOULD cause the Euro to rise. So the market is being quite rational in not seeing the Euro fall. If you take the rotten fruit out of a bowl the average quality of the fruit rises. The prospect of removing Greece and Spain from the Euro SHOULD cause the Euro to rise. So the market is being quite rational in not seeing the Euro fall.

]]> By: JYC3 http://blogs.reuters.com/great-debate/2012/05/29/why-isnt-the-euro-falling-even-further/comment-page-1/#comment-45107 JYC3 Tue, 29 May 2012 18:09:43 +0000 http://blogs.reuters.com/great-debate/?p=12908#comment-45107 The Euro's current trading value is a function of the probabilities associated with various outcomes. If the weak countries exit the Euro leaving behind a German anchored currency, the Euro would probably be more valuable. If the northern countries leave, a Euro anchored by France isn't much to write home about and those lows from right after introduction would be a magnet. Trading where it is, I would say the market believes the probability of the first is greater than the latter. There are obviously other scenarios but those are likely the two poles pulling the value in each direction. The Euro’s current trading value is a function of the probabilities associated with various outcomes. If the weak countries exit the Euro leaving behind a German anchored currency, the Euro would probably be more valuable. If the northern countries leave, a Euro anchored by France isn’t much to write home about and those lows from right after introduction would be a magnet. Trading where it is, I would say the market believes the probability of the first is greater than the latter. There are obviously other scenarios but those are likely the two poles pulling the value in each direction.

]]> By: georgetm http://blogs.reuters.com/great-debate/2012/05/29/why-isnt-the-euro-falling-even-further/comment-page-1/#comment-45106 georgetm Tue, 29 May 2012 18:05:33 +0000 http://blogs.reuters.com/great-debate/?p=12908#comment-45106 at every 1$ exports in Eurozone we have 2$ imports from the Eurozone how much do you think the Fed will allow a strong-dollar , see the case of Switzerland - though Switzerland is - de facto - in the Eurozone and has no liberty about its currency, as 3/4 of its exports go in the Eurozone, but that`s another discussion at every 1$ exports in Eurozone we have 2$ imports from the Eurozone
how much do you think the Fed will allow a strong-dollar ,
see the case of Switzerland – though Switzerland is – de facto – in the Eurozone and has no liberty about its currency, as 3/4 of its exports go in the Eurozone, but that`s another discussion

]]>