EUR passes US 1.50 Mark Eurozone Exporters Worry

Germany has already reported a fall in their trade surplus which later became part of a Eurozone deficit , now with the price of the EUR continuing to strenghten versus the US dollar, the exporters will begin to feel the currency’s strength cutting into their revenues.

The euro broke through $1.50 (U.S.) against the American dollar Wednesday for the first time since August 2008 as a deluge of corporate earnings sent investors mostly positive signals on the U.S. economy.

The dollar tends to trade inversely to stocks. When traders receive better than expected news on the economy or corporate results, they often buy equities or other countries’ currencies. Those are considered riskier than the U.S. dollar, traditionally thought a safe haven, but can also give higher yields.

The 16-nation euro peaked at $1.5017 in morning New York trading, up from $1.4928 late Tuesday. That’s the euro zone currency’s strongest level since August 2008.

Globe and Mail

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Alfonso Esparza

Alfonso Esparza

Senior Currency Analyst at Market Pulse
Alfonso Esparza specializes in macro forex strategies for North American and major currency pairs. Upon joining OANDA in 2007, Alfonso Esparza established the MarketPulseFX blog and he has since written extensively about central banks and global economic and political trends. Alfonso has also worked as a professional currency trader focused on North America and emerging markets. He has been published by The MarketWatch, Reuters, the Wall Street Journal and The Globe and Mail, and he also appears regularly as a guest commentator on networks including Bloomberg and BNN. He holds a finance degree from the Monterrey Institute of Technology and Higher Education (ITESM) and an MBA with a specialization on financial engineering and marketing from the University of Toronto.
Alfonso Esparza