Here is the Source
Posted on 05/19/2010 6:48:21 AM PDT by SeekAndFind
Whether or not Gisele and Jay-Z are still dancing, the euro party looks to be over.
Briefly slumping to a four-year low against the dollar yesterday, the euro has gained the dubious distinction of being the worst-performing major currency this year. And more pain could be on the way, despite the $1 trillion aid package that bought the European Union's financial impresarios enough time to force some tough love on Greece and other debt-tipsy members.
Although the currency regained a bit of strength today, don't expect it to find momentum anytime soon. In fact, it could still have a ways to fall.
Concern over the eurozone's growth and its lingering fiscal morass has led several analysts to call for the euro, currently valued at about $1.24, to reach dollar parity before it stages any sort of rebound. In making his own call for parity, Christopher Wood, chief equity strategist at CLSA Asia Pacific Markets, said that the euro will become "fundamentally weak currency."
Part of the problem, says BNP Paribas, which called for dollar-euro parity by 2011, is that Europe will probably be forced to switch from using fiscal tools to monetary instruments in its attempt to heal the system. That would mean printing money, which, BNP Paribas notes, would send "the euro massively lower."
While such a move might be good for blue-chip European exporters (and the reason analysts are now quickly lifting profit estimates for the members of the Euro Stoxx 50), it is bad news for many other investors and savers who may be caught flat-footed.
Parity, of course, was where the euro began its tumultuous life in January 1999, shortly before an earlier group of eurozone naysayers managed to push it down a good deal further.
(Excerpt) Read more at money.cnn.com ...
Below parity is not new. It was .96 to 1.00 in 2002.
I thought it was par when it was invented back in ‘02...
In order to implement the NWO world Currency all currency needs to par.
I thought it was par when it was invented back in ‘02...
First day of trading for Euro, 4 January 1999. Opened at 117.94 basis March 1999 futures, 117.85 spot. Traded down as low as 82.22 by October 2000.
That’s what I was wondering. Why does everyone think parity will be its bottom?
The euro bottomed out in October, 2000 at about US$0.825, or something less than 83 cents US.
It hovered from around 85 cents to near-parity to a little over parity until early 2003 and then began a five-year ascent to nearly US$1.60 in mid-2008.
My own bet is that it will continue to decline toward, and perhaps even below parity over the next year or two or three.
And if the Europeans don’t kick one or more of the PIIGS out of the eurozone, the euro may ultimately collapse completely.
There will be no currency, cashless societies...
Any way to bet on the euro future through investments? Like Soros did with the dollar a couple of years ago? I wonder where Soros position is now, betting against the euro?
Could’ve sworn it was around .88 when I was in Ireland. 2003?
You can trade Euro vs ANY other currency in the spot mkt, in virtually any denomination you like. I recommend (and deal with) Saxo Bank in Denmark. Very competent, scrupulously honest.
Good trading to you!
Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.