I do understand why in an economical crisis in the US the Dollar is going down.
I also understand why in an economical crisis in the US the Euro is going down, as obviously they are our main exterior buyer of products.
I also do understand why the Euro then is going down in comparison to currencies which are relatively trade independent.
What I don’t get about this is, that if both go down, shouldn’t they stay more or less at the same level? Or even more, the Dollar lose more in comparison to all other currencies, as the crisis is in their backyard? In Europe only one bank is affected so far, the bailout being 50 billion €, whereas in the US it’s 850. This should affect their economy (and thereby the currency) a lot more than ours, right? Especially as the European GDP is higher than the US-GDP, so it makes a lot more value in comparison.
So why does the Euro lose so much to the Dollar then? 15 cents in 10 days is quite a lot in my opinion.
Additional Information - How to report stock sale with no purchase records? If someone had purchased stocks over 10 years ago, sold it in 2006, has no history of the date of purchase or price other than the purchase happened in 1997 or 1998, and the financial firm no longer has history of the trades on the account, what is the best......
- Currency Trading Tutorial: Money Management For Profit In this specific currency trading tutorial we are going to discuss the ways in which you can manage your money in order to maximize your chances for gaining as much profits as possible, instead of losing your hard earned resources. Amongst investors, it's a well-known fact that forex (foreign exchange)......
- Monday Lotto AU 1million Tonight's draw is quite difficult to predict, but may be worth a few dollars. All numbers will probably be derived from the last 10 draws. 2 numbers out of the following 6 may feature: 3 8 23 24 27 42 12 games played in-house, with "Double up" feature, Cost: $6.05......
- Wednesday Lotto AU 1.5million No change in strategy today, as both aspects look strong, under 33 mainly or all, and within recent 4-7 draws. Due mainly to Saliu ION Filters being fairly low for a few draws, and having ANY 6 Filters of 43 and 35 in draw 7 and draw 9, all point......
yellow_tofu 18th December 2009
b/c all american banks are backed by the gov’t. the european banks are not backed by the gov’t. They are doing this small bail out to prevent panick. but it not only bank failure, but many other things that make the dollars weaken adgainst the other currencys. interest rate and stuff like that need to be taken into account.