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EURO HITS NEW LOW

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The EURO managed to go off a little cliff and is at a brand new low on a 5-year time span, and down 7 cents from three weeks ago.  Will the EURO continue it’s decline?

Many countries are reconsidering the value of the EURO in light of their own domestic financial troubles, and many of these countries in Europe are not alone.  Even Canada, one of the larger resource based countries, is facing plights similar to those of Russia, who has been sanctioned for their behavior in 2014.   While Canada was a pretty well-behaved country last year, it has fallen subject to “unintended sanctions” because of the drop in Oil prices.

The Alberta Premier seems to be ignorant on the matter, as he openly contested the results forecasted by the Conference Board of Canada, an agency dedicated to reporting the results in a straightforward fashion, with long-standing recognition and experience in using technical data. 

 

Is the EUROZONE worse off than Canada or Russia?  It is tough to say who is doing better or worse financially at this point because the metrics that so many traditional pricing models are based upon have either fallen out or changed.  This creates much more dynamic uncertainty in an environment that deals with currency exchange rates, imports, exports, and international business.  What we can infer from all this is that the international markets are more connected than perhaps many realized.  So a pinch here or there, may be felt in other areas that perhaps were not intended.

 

Is there a clear winner?   So far, the US Dollar seems to have been the most progressive, with gains being made over the Canadian Dollar, EURO, Bitcoin, and many other currencies.  The Swiss Franc, whom recently removed their Market Cap against the EURO will likely cause the EURO to continue its downswing, and could have other impacts across the markets.

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