Will the €uro drop now?

High energy

Here's the EURUSD chart over the last year:

http://finance.yahoo.com/echarts?s=EURUSD=X+Interactive#chart1:symbol=eurusd=x;range=1y;indicator=volume;charttype=line;crosshair=on;ohlcvalues=0;logscale=on;source=undefined

Fairly easy to spot when the bailout happened.

Apologies if this is the wrong forum for this topic but it concerns the Irish bailout so though it was the most relevant.

tinkerbell

I dunno, it was at a high there last week but then dropped with the uncertainty over Ireland. It's already gone up to 1.37 this evening now (it was at 1.36 earlier) - as a result I don't expect it to go down to the 1.2X levels it was at before. There's certainty now so perhaps it might hover around the 1.35 mark.

Smcgie

No it will go up. Investors will accumulate now that the bailout is here.

irishh_bob

it will most certainly go up

the question for us is how long we will be in it

dfbemt

First markets showing gains, up .50 against the $.

High energy

It did the exact opposite after the Greek bailout though, dropped to 1.19 on June 7th (1 month after the bailout) from 1.32 a few days before the bailout.

Hoffmans

Up for the short term ,gaining at the moment

tinkerbell

Yep I think it will go up / stay at same level now .... it was up high and the only reason it started dipping was because of all the uncertainty over Ireland and what would happen. Now that Ireland has been bailed out, I don't think it will dip further.

It's still up anyway from earlier on today. Not sure on the €/£ rate, I can't remember what it was at earlier, so dunno how that has changed.

sarumite

High energy wrote: »

It did the exact opposite after the Greek bailout though, dropped to 1.19 on June 7th (1 month after the bailout) from 1.32 a few days before the bailout.

True.....but this ignores factors affecting the other side of the equation...US$. America is currently going through a round of quantitative easing (QE2 as it is known). This is causing the $ to lose value. However with Portugal recently announcing their deficit is higher than expected, who knows whats going to happen in the near future.

irishh_bob

sarumite wrote: »

True.....but this ignores factors affecting the other side of the equation...US$. America is currently going through a round of quantitative easing (QE2 as it is known). This is causing the $ to lose value. However with Portugal recently announcing their deficit is higher than expected, who knows whats going to happen in the near future.

the only thing that can weaken euro against the dollar and sterling now is a shaky portugal and i dont think portugal are anywhere near we were

the dollar is on a permanent fall and the british dont want a strong pound , now that ireland is dealt with ( from europes point of viw ) , the euro will resume its dominance over the pound and the dollar