Euro worth the same as the dollar

whats newxt · 08-04-2015 02:50PM #1

Can someone explain to me why the euro is so weak now, a few years ago it was nearly equal to the pound sterling. why?

Wacker The Attacker · 08-04-2015 02:50PM

go on the euro the same as the dollar

biko · 08-04-2015 02:51PM

Because economics.

Ruu · 08-04-2015 02:52PM

Uncertainty surrounding Greece playing a huge part in it.

MarkAnthony · 08-04-2015 02:53PM

The Euro started trading on par with the dollar, these things are cyclical and people make (and lose) huge money on Forex.

jimgoose · 08-04-2015 02:54PM

Remember as a kid when you played "Shop" with all the other chungfellits and chungwans, using leaves or somesuch as money, and maybe crayons and playing-cards for the sausages and rashers? Well that's what the ECB is doing, more or less, only with big words and $2,000 Boss suits. And that's why the Euro is worth about the same as a bazillion Eye-tallan Lira from about twenty years ago.

darkpagandeath · 08-04-2015 02:55PM

QE Wait for this to hit oil prices, Well it already has but just wait.

Valetta · 08-04-2015 02:55PM

The price of a barrel of petrol directly impacts on the ratio of the Eurodollar to the yen, Frank.

Macavity. · 08-04-2015 02:56PM

All of the countries making up the 2010 PIGS group should have been told to feck off tbh, except us cos we're mad craic. :pac:

MarkAnthony · 08-04-2015 02:56PM

jimgoose wrote: »

Remember as a kid when you played "Shop" with all the other chungfellits and chungwans, using leaves or somesuch as money, and maybe crayons and playing-cards for the sausages and rashers? Well that's what the ECB is doing, more or less, only with big words and $2,000 Boss suits. And that's why the Euro is worth about the same as a bazillion Eye-tallan Lira from about twenty years ago.

Why do I think you're probably an Economics lecturer at UCC or UL :pac:

jimgoose · 08-04-2015 02:57PM

MarkAnthony wrote: »

Why do I think you're probably an Economics lecturer at UCC or UL :pac:

How dare you, I'm completely sober! :pac:

Polo_Mint · 08-04-2015 02:57PM

IS this not good for Ireland's exports?

MarkAnthony · 08-04-2015 02:59PM

Polo_Mint wrote: »

IS this not good for Ireland's exports?

I thought Ireland's main exports was J1 Students. Not good for them at all. Now they'll have to get cheaper gaffes to smash up.

darkpagandeath · 08-04-2015 02:59PM

Polo_Mint wrote: »

IS this not good for Ireland's exports?

Until the price of oil kicks in the Equations.

whats newxt · 08-04-2015 03:00PM

It's not good for me when i want to buy crap on the internet

Outkast_IRE · 08-04-2015 03:02PM

MarkAnthony wrote: »

I thought Ireland's main exports was J1 Students. Not good for them at all. Now they'll have to get cheaper gaffes to smash up.

Yes we export quite a bit to the US and UK so a weak Euro makes purchasing from Ireland more attractive to them.

However as anyone who buys stuff from amazon.co.uk or .com lately will tell you the exchange rate has made it alot less attractive to buy items from there.

08-04-2015 03:03PM

It's because of the Quantitive Easing strategy employed by the European Central Bank at the moment.
don't expect it to get any better in the short term. We will all have to take holidays in Euro countries this year.

shanered · 08-04-2015 03:05PM

http://www.bloomberg.com/news/articles/2015-01-22/draghi-commits-ecb-to-trillion-euro-qe-plan-in-deflation-fight

Its because they've started creating loads more euro, thus devaluing the euro.
Simples.

MarkAnthony · 08-04-2015 03:08PM

Outkast_IRE wrote: »

Yes we export quite a bit to the US and UK so a weak Euro makes purchasing from Ireland more attractive to them.

However as anyone who buys stuff from amazon.co.uk or .com lately will tell you the exchange rate has made it alot less attractive to buy items from there.

So exports are up, Irish consumers are propping up HM and US Treasuries less. Seems like a bit of a win, win.

jimgoose · 08-04-2015 03:08PM

Polo_Mint wrote: »

IS this not good for Ireland's exports?

It's fantastic for Ireland's exports. However, if you find yourself in the market for something other than beef, dairy products, zinc concentrates, medical devices, or exquisitely-crafted glassware it's a bit of a drag.

Valetta · 08-04-2015 03:09PM

Outkast_IRE wrote: »

Yes we export quite a bit to the US and UK so a weak Euro makes purchasing from Ireland more attractive to them.

However as anyone who buys stuff from amazon.co.uk or .com lately will tell you the exchange rate has made it alot less attractive to buy items from there.

Which in turn should boost our domestic businesses. (Ones that actually make stuff, and not buy in from outside the Eurozone)

smash · 08-04-2015 03:10PM

Greece played a huge part and so did the QE plan and then the US had a few weeks of good unemployment, non-farm payout and consumer confidence figures. It's currently at 1.0850 but hit a low in the 1.0400's and rebounded towards 1.1050. Parity was expected by the end of the year but some banks have revised their figures to be between 1.1000-1.1100 with a bounce back to around 1.1600 afterwards.

MarkAnthony · 08-04-2015 03:12PM

smash wrote: »

Greece played a huge part and so did the QE plan and then the US had a few weeks of good unemployment, non-farm payout and consumer confidence figures. It's currently at 1.0850 but hit a low in the 1.0400's and rebounded towards 1.1050. Parity was expected by the end of the year but some banks have revised their figures to be between 1.1000-1.1100 with a bounce back to around 1.1600 afterwards.

Opens Avatrade....

Valetta · 08-04-2015 03:18PM

sugarman wrote: »

Just buy from Amazon.de, es, fr etc.. No loss in exchange rates.

That's all very well, but if the products are sourced in the US, or a US$ zone, then the Euro price will reflect the bad fx rate.

Ste- · 08-04-2015 03:20PM

Equlaity for all.

diomed · 08-04-2015 03:25PM

The Euro is the same as a dollar to piss off that guy on CNBC Marketwatch who slagged off the Euro.

sabat · 08-04-2015 03:30PM

The Euro is essentially the Deutschmark with a different name and once the countries for whom it was unsuitable in the first place are removed or withdraw it will regain its status as a stable hard currency.