Home -> Law Blog Directory -> Legal Commentary Blogs -> LawPundit

Legal Commentary

: LawPundit

Money and the Market for Currency: How Strong is the Euro versus the U.S. Dollar? Long-term? Short-term?

By Andis Kaulins

Harvard doctoral researcher Robert Foa at his Merchant of Venice blog at EUobserver.com in The Euro: A Better Reserve Currency comments on a chart at Clemens Kownatzki's blog FXIS Market Insights which shows a long-term trend for the Euro as getting stronger against the dollar, in spite of periodic short-term downturns, such as the downward turn of the current Euro-phase:




The graphic is copyright © eSignal 2008, a popular provider of real-time quotes and analysis on world markets.

We looked at a more recent comparison of the Euro and the U.S. Dollar at ECB, the European Central Bank, and although the downturn has continued in 2010 after a high in December, 2009, it is still not clear whether the Euro will drop clear down to parity, i.e. 1.000, as a technical analysis of the chart might predict -- i.e. as if the bottom lower line were seen to mark the next "trough" in the chart. Please be aware that this not a prediction of future currency exchange rates but merely provides information as to "what has been". What the future will bring is anybody's guess.

Full post as published by LawPundit on March 31, 2010 (boomark / email).