EUR passes US 1.50 Mark Eurozone Exporters Worry

Germany has already reported a fall in their trade surplus which later became part of a Eurozone deficit , now with the price of the EUR continuing to strenghten versus the US dollar, the exporters will begin to feel the currency’s strength cutting into their revenues.

The euro broke through $1.50 (U.S.) against the American dollar Wednesday for the first time since August 2008 as a deluge of corporate earnings sent investors mostly positive signals on the U.S. economy.

The dollar tends to trade inversely to stocks. When traders receive better than expected news on the economy or corporate results, they often buy equities or other countries’ currencies. Those are considered riskier than the U.S. dollar, traditionally thought a safe haven, but can also give higher yields.

The 16-nation euro peaked at $1.5017 in morning New York trading, up from $1.4928 late Tuesday. That’s the euro zone currency’s strongest level since August 2008.

Globe and Mail

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