Posted December 17, 2010
Most people will know by now that the Euro is going through a very tough time at the moment. The single European currency has had a real struggle to remain in anything remotely like a strong position in recent weeks and months, and we can see this more than ever when we compare it to the results we have seen against the US dollar.
As the month of October came to an end, the Euro was bagging a reasonable amount of 1.3857 against the US dollar. It improved on each of the first two days in November to finish the day on 1.4018 in that case. The rest of that first week went just as well, with the Euro finishing on 1.4084 in the end. So was this going to be a good month for the Euro after all, with the US dollar unable to do much to fight against it?
As it turned out this was a very early stage in the tussle between the two currencies. There was no doubt that the Euro was having trouble and trying to remain a strong currency in Europe and indeed the world. But the troubles of the countries using the currency seemed to be bleeding through to the currency itself, as we were about to find out.
As the second week dawned the currency immediately dropped down to 1.3917, giving us pause for thought and making us wonder what would happen next. Two days later we got our answer – at least thus far – as the Euro fell to 1.3770. Was there more of the same to come?
That particular week finished on 1.3711 for the Euro, as the US dollar took advantage of the troubles the Euro found itself in. The following week didn’t show any respite for the Euro either as by the end of Monday evening it had fallen still further to 1.3626.
It was clear now that nothing was going to really make a difference for the Euro, at least not during November. The only real question was whether it could improve at all or whether it had gone into something resembling freefall. It dipped alarmingly to 1.3481 on the 17th before recovering to 1.3647 and finishing the week slightly higher on 1.3674 as well.
But this turned out to be nothing more than a slight reprieve. By the time the 24th had rolled around the Euro had sank down to 1.3496 and 1.3339 was on the cards the very next day as well. The US dollar was clearly making the most of the situation and the Euro could do nothing about it. But there were still other depths to plumb before the month was over.
On the penultimate day the Euro sank down to 1.3146 and at the end of the month it looked even sadder on 1.2998. If there was ever a reason to have a concern about the Euro, we certainly had it all this month.