What reasons are there to believe that the Euro dollar is better than USD?

Question

what are some of the reasons someone would prefer the euro?

Answer 1

I think you are confusing the currency "Euro" and the the futures contract "Eurodollar".

Euro is a currency for the European Union (12 European nations).

Eurodollars are a US dollars deposited in non-US banks. It is an Interest Rate instrument, not a currency. The Eurodollar serves as a benchmark interest rate for corporate funding. Eurodollar futures are traded actively on the Chicago Mercantile Exchange.

There is no such thing as one currency being "better" than another. They are both the market's perception of the relative worth of that currency.

Right now the EURUSD rate hasn't shown that much movement in the last 5 months:
http://finance.yahoo.com/q/bc?s=EURUSD=X&t=3m
although we do seem to be nearing a support level at which the Euro either needs to rebound to stay in the range or it'll probably head down towards 1.20

Reasons for preferring the Euro over USD:
1. Stability of government (many governements in EU, slow to move)
2. Relative stability of debt in Europe. Currently the US is haemmoraging due to their large defence/war budget requirements.


Cheers,
Richard.

Answer 2

The word "beter" is a subjective term, and could mean many things.

Better how?

Do you mean "more value?"

Are you talking about the excange rate?

More prestige?

Are you asking if the European economy is in better shape?

Are you talking about the supporting factors for the different currencies, or lack thereof?

Answer 3

the euro is stronger than the dollar ,in europe i cash all my dollars to euros,from mikhal in israel.

Answer 4

well the US Dollar is a little shakey right now, if you know what I mean. We are just a bit overextended, it's a crap shoot for sure!

Answer 5

There is no such thing as a Euro "dollar".

Answer 6

Its worth more these days.

Answer 7

There isn't any