Why is the euro declining so much recently?

Discussion in 'General Trading Discussion' started by queenbellevue, Mar 20, 2015.

  1. rightct

    rightct Well-Known Member

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    Haha, right. The last time Zimbabwe tried doing that, the national inflation reached a peak that nobody currently achieved, I think: 11.2 million percent.
    Of course, comparing Zimbabwe to EU is like bananas and apples, but I just want to say that EU wouldn't want to tread the same path. :)
     
  2. crimsonghost747

    crimsonghost747 Senior Investor

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    Yes it's a different situation and a whole different type of economy we are talking about. Printing money worked well for the USA, it won't work so well for Europe because here it's not about the available capital, it's about the governments being so harsh with regulations and taxes towards companies. It is hard for companies to flourish in this atmosphere and thus they are not willing to make big investments... even if they can do it with 0% interest rate on their loans.
     
  3. voronnorov

    voronnorov Member

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    There is a widespread belief, is the generally accepted theory that inflation is a monetary function.
    However, statistical and fundamental research shows that it is not.
    Inflation is not a monetary function.
    This is a function of self-organization of society.
    In a market organized societies, with strong domestic competition the number of print money does not affect inflation. And even on the contrary.
    When non-market societies dominated by monopoly on power and resources, all the money immediately turn into a rise in prices.
    I spend these studies. So far only in Russian.
    My knowledge of English is not enough for publications such materials.
     
  4. gracer

    gracer Senior Investor

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    Despite of the declining Euro, some companies are gaining from such a loss. Bayer is said to be gaining profits as the Euro declines because competitions can't seem to catch up with them.
     
  5. manoharb

    manoharb Senior Investor

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    FED rate hike is ahead, so profit booking in EURO, GBP will get continued.
     
  6. manoharb

    manoharb Senior Investor

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    $ index have bearish format in April, but even after that $ index crossed 100 , because of bad nos. from another markets, after that $ index started following downtrend, because of heavy buying in GBP and Euro,$ index is still weak, $ index and Dow30 can't fall together, if it's happened, means FED rate hike soon. In short, Profit booking in Forex , controlling downside of FTSE100, Dax, Dow30 etc. in fact world markets.
     
  7. manoharb

    manoharb Senior Investor

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    US-Iran deal in June, is Important for Euro uptrend, Crash in Gold or Crash in Crude , depends on US-Iran deal, If deal successful, Crash in Crude, Euro uptrend will remain intact and if Deal failure crash in Gold.
     
  8. Taki

    Taki Active Member

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    I think a better question would be why is the USD going so HIGH lately. Look, we all know the market is rigged...the government has even come out and admitted it. So the real question is why are the currencies moving like they are.

    My personal opinion is that as the dollar rises, other currencies will fall. And the reason the dollar is riding high is not because of some inherent increase in value, its because of Russia. We are pushing the dollar high to devalue Russia's currency and try to get them to fall back in line with our vision of the future. A future with the USA as the sole leader of the world. The new Atlantis or so some of those old rich white guys would like you to think.

    A strong dollar has caused me to loose more money than I ever imagined it would. I never expected the dollar to rise this high considering just how horrible the real economy is compared to the rigged numbers. I figured that even the yahoos who decide this would be afraid to go this far. I was wrong. And it looks like we will end up starting a new world war because of it.

    Many people think that we are superior to all other nations militarily and on the surface they may be right. But I bet that Russia is dusting off some of that old Cold War research at this point and time. And some of the rumors of their projects were a lot scarier than the stuff we worked on. A lot more scary.
     
  9. JR Ewing

    JR Ewing Super Moderator Staff Member

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    The main reason for the rising dollar is that other countries' currencies are getting weaker - failing economies, excessive borrowing, cutting interest rates, QE, etc.

    Some are saying that because so many other countries and regions are cutting rates and keeping them low, this means that we're less likely to raise ours anytime soon.

    How exactly are markets "rigged"? I've done pretty well overall over the past couple of decades.
     
  10. Taki

    Taki Active Member

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    Its well known that the Federal Reserve is the mover of the dollar. And frankly speaking, a stronger currency should reflect a working class that is flush with capital to fuel investment and that is simply not happening here in the USA. Sure the fat cats are drowning in money...but that does not make the dollar any stronger as a generally currency. No! Not at all. Seems like you believe that austerity would strengthen a currency and yet we see in the EU that it simply did not work as presented.

    Stimulus seems to strengthen a currency but even that is illusionary because it still does not solve the problem that the general public is spending nearly everything they make to survive in this economy.

    And I have to ask where you have been for the past decade to not know that the markets are rigged here in the states? Dang near everyone I know is talking about this and we are NOT happy. We are loosing faith in our government to provide a stable marketplace that is fair for everyone. High speed electronic trading comes to mind without delving deeper into fundamental economics that are driving inequality all over the world.
     

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