Will the Euro continue to gain ground in value against the US dollar?

Answer 1

The basic problem is our large trade deficit and the mortgage crisis was just the trigger. Theory suggests that when currencies correct for trade imbalances the initially over correct, so the dollar will end up above its low. In any case the currency markets have experts putting a lot of money on the line so barring news where it is, is the average of the experts evaluation of were it will be for the short term.

Answer 2

All signs point to Yes.

LOL, no I didn't use a Magic 8 Ball. Many ForEx analysts and economists are predicting the Euro to peak at €1 to $1.50.

Considering how the forclosures on bad loans in the US housing market is evolving from a flood into a tsunami, and what an effect this has on the US economy, the US currency will continue to remain weak.

Peace.

Answer 3

No the dollar will continue to sink. The relative value of the euro compared to other currencies will stay the same.

Answer 4

it is going to take plenty greater beneficial than a quick sequence of "25 foundation factor will advance" to suck each and every of the surplus liquidity out of the equipment. Liquidity that hasn't been very liquid the final couple of years. we've traditionally severe emptiness expenditures and the various lowest expenditures interior the actual sources markets today yet in spite of traditionally low expenditures of interest and much greater historic quantities of liquidity injected into the financial equipment by way of the Fed there has been little, if any, upward circulation. The financial base has bigger 3 hundred% considering that 2008 and banks presently have extra reserves of over $a million.2 trillion on account with the Fed. With fractional reserve banking it somewhat is one greater $11 trillion truthfully injected into the financial equipment. even although Benake, the Fed chairman, had pronounced "we can't monetize the debt", the Fed has monetized over one trillion in debt this financial year. the present auctions of U.S. Treasuries have shown worrisome tendencies, with the Fed determining to purchase over 70% of previous due. that's an illustration that the markets may well be dropping the urge for foodstuff for U.S. debt and the Fed is stepping in to prop it up. Many additionally factor to the inventory exchanges as a hallmark of the financial equipment, yet even Bernake has pronounced "this technique has helped by way of elevating expenditures on shares". no longer a hallmark of the financial equipment yet a reaction to failing rules.

Answer 5

that depends how ours and the european economies do