If you've been thinking about going to Europe you may want to wait just a few more weeks if you can. The Euro, which has been as high as 1.50 against the dollar in the last year, is currently trading at 1.35. There is now talk about the Euro achieving parity with the US Dollar, something absolutely no one could have predicted. Part of the reason for the movement is the role of currency traders, who are looking at the battering the Euro is taking as an opportunity to make lots and lots of money. Good for tourists, good for European exporters (Airbus and French wine), probably bad for European carmakers who locked in hedges at a stronger rate, good for European companies that can take advantage of the low rates to lock in future hedges (no one expects the dollar to become stronger than the Euro), and bad for European companies buying oil priced in US dollars. Isn't currency fun?
Hedge Funds Try 'Career Trade' Against Euro - WSJ.com
Subscribe to:
Post Comments (Atom)
No comments:
Post a Comment