Germany’s President Resigns, Euro Plunges
The euro went down today after Germany’s president unexpectedly resigned and on the concerns that the measures taken to contain the debt crisis may hurt the European economy.
Horst Koehler announced yesterday the decision to leave his post as the President of Germany, making it harder for the Chancellor Angela Merkel to fight with the EU troubles. The unemployment rate in the Eurozone rose from 10 percent in March to 10.1 percent in April, the highest rate since June 1998.
The experts say that the euro should come closer to the ”fair price” to attract the investors. The economists think that the ”fair price” is about $1.20.
EUR/USD fell to about 1.2276 today as of 16:52 GMT after opening at 1.2305. EUR/GBP plunged to 0.8356 from its opening price of 0.8460. EUR/JPY traded near 111.95.
If you have any questions, comments or opinions regarding the Euro, feel free to post them using the commentary form below.
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EUR/GBP, EUR/JPY, EUR/USD, Eurozone, Germany, Horst Koehler, Unemployment
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Earlier News About the Euro:
- Euro Moves with Volatility This Week (2010-05-29)
- Euro Experiences Volatile Moves on Talks About Austerity Measures (2010-05-28)
- Concerns Go Away, Euro Goes Up (2010-05-27)
- Euro Rebounds After Decline, but Forecasts Remain Pessimistic (2010-05-27)
- Bank's Bankruptcy in Spain Renewed Concerns for Euro (2010-05-24)
2 Comments
What is the forecast on the Euro to Dollar rates for the next 6 months?
I doubt that anyone can forecast EUR/USD rate for the next 6 months with a reasonable level of accuracy. The level of uncertainty is so high on the markets that it’s quite impossible to predict anything here, except for maybe some short-term movements induced by news or technical analysis.