Is The Euro In Danger Of Being Pressured By Other Currencies?
But that could be about to change if worries over the currency and the region it comes from are well founded. A recent article in the Financial Times – available on their website (sign in for free if you cannot read it) – seemed to say that things could change. And it is the condition that the European banks might be in that could influence any movements in this area.
So what is in store here for us? Could we finally find ourselves able to make good gains on the Euro, as a result of taking advantage of a tricky position the European region finds itself in? There is no doubt that everyone is finding the recession hard to cope with, and with unprecedented events taking place all over the world with regard to banking and similar situations, anything could happen.
So how have the various currencies been coping with recent events with the Euro? Has there been any change in the figures the currency converter would have thrown up for us to see? Let’s look at the performance of the Euro against the British pound for starters, to see how things have progressed since the beginning of June.
It has actually been something of a choppy time, which is probably telling since the British pound has hardly been the strongest of currencies in recent months. On the 1st June the Euro was claiming 0.8680 pounds sterling, and while that dropped to 0.8597 just two days later, it was back up to 0.8792 another two days after that.
It was fluctuating between 0.84 and 0.85 for quite some time before claiming an exchange rate of 0.8562 on the week ending the 3rd July, but there was more in store as the Euro did get its teeth into the market for the following few days. It managed to up things to 0.8612 on the 6th, before increasing to 0.8638 just a day later and then to 0.8649 a day after that.
But the final two days of that week were perhaps where the doubts started to make themselves known. On Thursday the Euro could only muster up an exchange rate of 0.8606 with the British pound, and that fell still further to close on 0.8580 for the end of the week. Was this the first sign of the doubts that were clearly in the air, according to the Financial Times report?
Furthermore, was this really something that could be seen against other currencies as well? Or was it simply a situation that was more evident with some currencies than others?
Let’s see how the US dollar fared against the Euro for this same time period. The Euro was bagging 1.4220 US dollars on the 1st June, but that was down to 1.4095 three days later. And on the 8th it was flagging considerably – back to 1.3866. Were these the signs being talked about that were being shown much earlier than we had seen them against the British pound? Possibly – after all, the pound is arguably much weaker than the US dollar at the moment. This means that the dollar should be able to stand up against the Euro far more strongly, and indeed it would seem that this is what was happening.
Exactly a week later we were on 1.3850, but although things did spring back to 1.4134 to close out the month of June, there were more poor results on the way for the Euro. By the time the first day of July was over with, the Euro was claiming 1.4096 US dollars, and that had dropped back to just 1.3897 by the 6th of the month.
The week of the 10th July came to a close with the Euro bagging an exchange rate of 1.3901 against the US dollar. It will be hoping that it can do better than this in the coming days, but that is by no means certain. If the news being reported is true, then we shall see the Euro struggling even more in the weeks to come.
Perhaps it is understandable to have the Euro in such a pickle when the Euroland is apparently struggling with its economy so much. We’re all in the same boat – but the Euroland is a very big boat, and that’s the difference.