Euro plunges through key support level of $1.25

Cassandra Syndrome

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hiding behind a poster

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Excellent. We're more exposed than any other Eurozone country to a high Euro, due to our reliance on the UK and US markets.
 

orbit

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It's mostly good news alright (for us at least) and was an inevitable consequence of the measures to prop up the euro zone.
 

meriwether

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This is good.

Its the 'devalue' part of the 'withdraw and devalue from the Euro' agrument we've been hearing, without the nonsense of 'withdraw'.

Unless of course its a harbringer of the collapse of the Euro.

But if it does collapse, nothing matters much anyway.
 

meriwether

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no, no.... Cassie used the word plunge, so it can only be bad news.

And 'key support level'.

It 'plunged' [very bad] through the 'key support level' [worse again, because this support level is key].

To the bomb shelter, make haste. Bring the tinned goods.
 

rhonda15

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meanwhile gold continues it's upward trend
 

FlyOver

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It wasn't a bailout of the Euro. Twat.
Oi....you don't think that the weakening Euro is not a direct indicator that the world does not have any faith in the bailout??? The whole purpose last weekend was to give confidence to the world that the EU was going to work out a solution. The weakening euro says that no one believes it was enough or that it was doable.....connect the dots will ya!!!
 

Mossy Heneberry

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A devalued currency will see our imports cost rise and in general consumer prices rising as well.

Consider Iceland:

Consider first of all the collapse in real wages for Icelandic workers. Average hourly earnings rose in nominal terms by 3.6% between March 2009 and March 2010, after having risen by 5.5% between March 2008 and March 2009. As a result the cumulative 2 year increase is 9.3%, not so bad, eh?

Or actually, yes, it is bad, since consumer prices rose 11.6% between March 2009 and March 2010, after having risen by 19.9% between March 2008 and March 2009.

As a result, real wages fell 7.2% in the latest year, after having fallen 12% during the previous year, for a cumulative 2 year decline of 18.3%.

An 18.3% decline in real hourly earnings would by itself be more than bad enough, but it gets worse as Icelandic workers that have kept their jobs have also seen a decline in the number of hours they get to work, meaning that their real weekly/monthly pay declined even more. With the average work week declining by 5.5%, from 41.9 to 39.6 hours, this implies a decline in real earnings for workers who have kept their jobs of 22.8%.

And it gets even worse if you consider that the employment rate fell from 81.3% in 2007 to 75.1% in 2009. Add that into the equation, and you'll find that the average real pay of all people in Iceland fell by as much as 28.7%.
Stefan Karlsson's blog
 

Cassandra Syndrome

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grafter1

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The Euro is dropping like a stone and i can only imagine that the hedge funds who shorted Greece have moved to shorting the Euro against every other have decent currency.

I'm saying $1.10 to the euro by August
 
G

Gadjodilo

I don't see Trichet rushing to the nearest microphone to defend the currency. I wonder is there anyone in the eurozone who wants to maintain the currency at the current level.

How are Portuguese, Spanish and Irish bond yields, I wonder? Cassandra? Dreaded Estate? If these remain low, then that might be the main problem solved. We can get our financing from the markets and claw our way out as competitiveness is restored.
 

GDPR

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Oi....you don't think that the weakening Euro is not a direct indicator that the world does not have any faith in the bailout??? The whole purpose last weekend was to give confidence to the world that the EU was going to work out a solution. The weakening euro says that no one believes it was enough or that it was doable.....connect the dots will ya!!!
Why haven't the bond rates gone back to where they were then?
 

SeamusFrance

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This is great news for Ireland, will give us an extra competitiveness edge in our 2 main markets of the UK and US.

Also, a long overdue rebalancing of the euro's value against the dollar.

More expensive imports is a tolerable side effect.
 
G

Gadjodilo

A devalued currency will see our imports cost rise and in general consumer prices rising as well.
So.... sod US and UK imports. Buy Guaranteed Eurozone only.

Seriously, we're in deflation at the moment. A little inflation would be good for the economy.
 

Outlander

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Whatever about the €, the £ is heading for lows against the dollar not seen in 10 years - now at 1.45.
 

orbit

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The Euro is dropping like a stone and i can only imagine that the hedge funds who shorted Greece have moved to shorting the Euro against every other have decent currency.

I'm saying $1.10 to the euro by August
So what? It's been lower than that in the past ...
 

mixer73

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