NationStates Jolt Archive

I know some Europeans will take this as another American insulting the EU, but it's not. It's an honest question.

The Euro was trading at $1.22 this morning. Why? Germany has double digit unemployment, France, Germany and Italy are seeing virtually no economic growth. Why is the Euro more vauable than the dollar right now?

I know some Europeans will take this as another American insulting the EU, but it's not. It's an honest question.

The Euro was trading at $1.22 this morning. Why? Germany has double digit unemployment, France, Germany and Italy are seeing virtually no economic growth. Why is the Euro more vauable than the dollar right now?

It's an economic attack on the US!!!!! *looks back and forth quickly and hunches down deeper into his trench coat* Don't say I didn't warn ya cause I did!

The Euro is freely traded. It is not being artificially supported by foreign banks due to their reserves being in Euros or anything like that. How then is it overvalued? Institutions pay what they consider to be an equitable price to buy Euros.

Have you considered that the value of the Dollar may be the problem here, not the value of the Euro.

The Euro is freely traded. It is not being artificially supported by foreign banks due to their reserves being in Euros or anything like that. How then is it overvalued? Institutions pay what they consider to be an equitable price to buy Euros.

Have you considered that the value of the Dollar may be the problem here, not the value of the Euro.

It's not a problem for me. It explains why German automakers are sending their factories here.

It's not a problem for me. It explains why German automakers are sending their factories here.

Just in terms of DCR thinking the Euro was overvalued against the Dollar.

The US needs the Dollar to be lower to help cure its balance of trade problem.

It's not a problem for me. It explains why German automakers are sending their factories here.

Yeah. They used to get cheap, unregulated labour in the 3rd world, now they can get it in the US.

Just in terms of DCR thinking the Euro was overvalued against the Dollar.

The US needs the Dollar to be lower to help cure its balance of trade problem.

Exactly, its simple economics. There is pressure on the euro to fall in relation to other currencies but the pressure on the dollar to fall is even greater due to the huge trade deficit, that is why the euro is worth more than the dollar at the moment.

It's also a function of the Chinese Yuan being pegged to the dollar artificially. Of anything, that's what is keeping the dollar and the Euro out of whack (even with each other), since they both have a large percentage of trade with China.