Euro worth the same as the dollar

whats newxt

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

go on the euro the same as the dollar

biko

Because economics.

Ruu

Uncertainty surrounding Greece playing a huge part in it.

MarkAnthony

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

jimgoose

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

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

Valetta

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

Macavity.

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

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

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

IS this not good for Ireland's exports?

MarkAnthony

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

Polo_Mint wrote: »

IS this not good for Ireland's exports?

Until the price of oil kicks in the Equations.

whats newxt

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

Outkast_IRE

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.

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

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

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

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

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

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

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

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-

Equlaity for all.

diomed

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

sabat

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.

Faith+1

It's simple economics OP. I don't understand it....I don't understand it at all. But god I love it.

PizzamanIRL

Nice. Now that the whole currency equality is done, let's get that gay marriage thing sorted out.

darkpagandeath

PizzamanIRL wrote: »

Nice. Now that the whole currency equality is done, let's get that gay marriage thing sorted out.

You may have a problem if you try buy a cake in Sterling :pac:

valoren

It yoyos up and down...i'll get me coat

Renegade Mechanic

Quantitive Easing. In layman terms if you desperately need money to repay a bank loan and you have a van for sale, that's been for sale for a while because the engine is knocking, making it effectively useless to any prospective buyer, you just print a load of money so you can buy the van off yourself and pay your bank.. Make sure you run a country/economic region though, or you might to jail.

Simple!

Fr_Dougal

Renegade Mechanic wrote: »

Quantitive Easing. In layman terms if you desperately need money to repay a bank loan and you have a van for sale, that's been for sale for a while because the engine is knocking, making it effectively useless to any prospective buyer, you just print a load of money so you can buy the van off yourself and pay your bank.. Make sure you run a country/economic region though, or you might to jail.

Simple!

What year is the van you're selling and how bad in the knock?

jimgoose

Fr_Dougal wrote: »

What year is the van you're selling and how bad in the knock?

Yeah, if it's a Transit then sod the knock, hoof a 400-inch Cleveland V8 in there and go dragging 'Felty Audis. :cool:

Egginacup

Polo_Mint wrote: »

IS this not good for Ireland's exports?

It probably would be if we exported more than we imported.

We get the same amount of euros for our exports but we have to shell out more euros for the same amount of shit we import.

Generic Dreadhead

Was the angry face really necessary in the thread title? :pac:

smash

Polo_Mint wrote: »

IS this not good for Ireland's exports?

If oil rises and the Euro stays down just imagine how much we'll pay at the pump. Then imagine how much we'll pay for everything else because the costs of production and transport for most goods will go up. Shipping potatoes and beef abroad for an extra few pence isn't going to cut it...

al22

Beause it is nearly the same piece of paper and no difference to print Euro or Dollar image on the same piece of paper. :-)

Renegade Mechanic

smash wrote: »

If oil rises and the Euro stays down just imagine how much we'll pay at the pump. Then imagine how much we'll pay for everything else because the costs of production and transport for most goods will go up. Shipping potatoes and beef abroad for an extra few pence isn't going to cut it...

Exactly. Oil is rising in price again, the currency it's sold in is strengthening and the currency we're using to buy that currency is weakening. People have no idea just how easily we could end up paying well over €2.50 per liter. And everything else that follows such prices.

Renegade Mechanic

Fr_Dougal wrote: »

What year is the van you're selling and how bad in the knock?

98 Master and you'd actually want your seatbelt on you as the vibration could throw you out of it..

Outkast_IRE

sugarman wrote: »

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

Its odd some of the items i am looking at seem to be either pegged to the UK price anyway or slightly cheaper. I would imagine amazon probably try to keep pricing relatively level across their EU stores.

smash

Renegade Mechanic wrote: »

Exactly. Oil is rising in price again, the currency it's sold in is strengthening and the currency we're using to buy that currency is weakening. People have no idea just how easily we could end up paying well over €2.50 per liter. And everything else that follows such prices.

The only saving grace right now, and it's temporary, is that OPEC won't jump in with a price rise because their low prices are wiping out the shale oil companies in the states who can't compete.

darkpagandeath

Renegade Mechanic wrote: »

Exactly. Oil is rising in price again, the currency it's sold in is strengthening and the currency we're using to buy that currency is weakening. People have no idea just how easily we could end up paying well over €2.50 per liter. And everything else that follows such prices.

But we are the fastest growing economy in the EZ :pac::pac:

Renegade Mechanic

smash wrote: »

The only saving grace right now, and it's temporary, is that OPEC won't jump in with a price rise because their low prices are wiping out the shale oil companies in the states who can't compete.

True. And I'm wondering what effect Iran will have on the global price when their sanctions start lifting. Will they tow the opec line or sell what they can..

Opec amuse me. Fair enough, why they do it and all, but they should be more interested in sharing their market more instead of trying to flood the competition out. They quite literally can't do it forever. (And another "certain player" doesn't look like its about to collapse like last time, either..)

Renegade Mechanic

darkpagandeath wrote: »

But we are the fastest growing economy in the EZ :pac::pac:

The "Leganza" was the fastest accelerating car in Daewoos production lineup

Maximus Alexander

Renegade Mechanic wrote: »

They quite literally can't do it forever.

They kinda can. The idea that we're going to run out of oil is dead and buried. We've enough to burn until we blacken the skies and murder ourselves.

kjl

It's simple really,

they are printing more euro so there is more in circulation but it doesn't change value of total amount of worth of all the money, it just means there is more of it hence 1 unit of that currency is not as strong as it was. Imagine if all the euro in the world was €100. Now imagine an item that costs €1 and that same item cost $1.20. If they printed another €20, what has changed, the item is still the same except it now 20% cheaper to buy it with the euro that it is with the dollar if the rate stays the same then the dollar is losing out, so it adjusts itself. But then the guy selling the item says, hey wait a minute, my item is now cheaper even though it didn't change value in any way, so he put the price up to €1.20 so now it cost €1.20 which in turn makes it work the same as the original dollar price.

As for the reason, well they are deliberately doing it is to increase trade in the eurozone, because the item is now cheaper for the american to buy in europe than it is in america, but now america is worse off because they just gave us their money instead of keeping it their own country ergo we get richer.

Renegade Mechanic

Maximus Alexander wrote: »

They kinda can. The idea that we're going to run out of oil is dead and buried. We've enough to burn until we blacken the skies and murder ourselves.

I dunno... The entire BP oil spill was large enough to fuel the world for about an hour and fifteen minutes...

That kind of consumption has to be way faster than the earths ability to replace it.

Maximus Alexander

Renegade Mechanic wrote: »

I dunno... The entire BP oil spill was large enough to fuel the world for about an hour and fifteen minutes...

That kind of consumption has to be way faster than the earths ability to replace it.

Of course, the Earth isn't going to replenish it any time soon, but the amount already available is so vast that there is no danger of it becoming scarce in near to medium term.

There's a decent article about it here. (Lots more out there too )

darkpagandeath

Maximus Alexander wrote: »

Of course, the Earth isn't going to replenish it any time soon, but the amount already available is so vast that there is no danger of it becoming scarce in near to medium term.

There's a decent article about it here. (Lots more out there too )

The 40/50 years scare did wonder for prices though did it not :pac:

Knex*

kjl wrote: »

It's simple really,

Alright Knexy boy, have a read. Educate yourself.

kjl wrote: »

Imagine if all the euro in the world was €100. Now imagine an item that costs €1 and that same item cost $1.20. If they printed another €20, what has changed, the item is still the same except it now 20% cheaper to buy it with the euro that it is with the dollar if the rate stays the same then the dollar is losing out, so it adjusts itself. But then the guy selling the item says, hey wait a minute, my item is now cheaper even though it didn't change value in any way, so he put the price up to €1.20 so now it cost €1.20 which in turn makes it work the same as the original dollar price.

Nope.