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"The euro slid almost 1 per cent to $1.357 yesterday, meaning it has lost 10 per cent of its value since November. The pound rose to 1.14 euros." Data point 1:
by handelaar 17y ago
"The euro slid almost 1 per cent to $1.357 yesterday, meaning it has lost 10 per cent of its value since November. The pound rose to 1.14 euros."
Data point 1: On day one the value of the Euro was exactly US$1.00.
Data point 2: The pound was worth €1.40-€1.45 for at least four straight years until last year's sterling collapse.
Yeah, clearly the Euro's in trouble.
In fact the enormous relative value of the Euro since the crash has been causing significant problems for exporting businesses (and tourism) across Euroland for the last 12 months. We could really do with a devaluation.
- hga 17y ago"We could really do with a devaluation." As I understand it, there's a/the problem. The PIIGS (Portugal, Ireland, Italy, Greece and Spain) very much want a devaluation right now, Germany and maybe France say "no way".
- handelaar 17y ago...without giving much in the way of explanation why. You'll notice that these so-called 'PIIGS' have a much larger dependency on tourism from the US and UK than any other Euroland countries. At the moment the USD/GBP devaluations are killing them. (Yes, most of them also have grave public spending issues, but Ireland has dug itself out - at least to the extent that its debt is coming down and because of that it's not paying super-premium bond rates.)
- MaysonL 17y agoSuper-premium bond rates? Greek 10-year bond rates are currently 6.11% - which is perhaps high for a sovereign bond, but not super-premium. http://www.businessweek.com/news/2010-02-12/greek-two-year-bonds-rise-for-fourth-day-after-eu-help-pledge.html http://www.businessweek.com/news/2010-02-12/greek-two-year-b...