Why is the exchange rate from the USD to the Euro continuing to worsen? What are the factors?!?

Answer 1

Because there is increasing demand for using the Euro and less demand for use of the US dollar. The US has borrowed about $500 billion dollars for the so called war on terror . When a country goes too far in debt it`s currency is devalued.

Answer 2

The trade deficit may contribute, but its also true that sometimes in the face of large trade deficits, the dollar strengthens. My advice -- it's like cattle: don't try to understand 'em, just rope, throw and brand 'em.

Probably some one-time trend people don't quite understand. It WILL cycle back, I'd happily bet my money on that -- it virtually will have to as price deltas between the US and Europe become too distorted.

Answer 3

Econ 101 >>> basic economics. it's the increasing trade deficit. see this http://news.yahoo.com/s/ap/20070213/ap_on_bi_go_ec_fi/economy just part of the plan from the idea man.