What's happening to the Euro

[chiangrai]

I see that the Euro has dropped to 36 baht.

Does anybody know why or how long it's going to stay that low.

When will it go up again or will it sink even lower.

[midas]

" When will it go up again or will it sink even lower."

In the words of Karen Carpenter who so beautifully sang “ we’ve only just begun “

http://www.cnbc.com/id/102361060#.

[Pib]

I'm sure every EU finance minister and the ECB will be watching the replies to the OP's question as they are asking the same questions.

[johnnybgood]

[Xircal]

It's called 'Quantitive Easing' and comprises of the ECB buying its own bonds and those of private investors to stimulate the EU economy. That negatively affects interest rates and the value of the Euro.

The theory is that if interest rates are negative, or close to that figure, consumers will start to spend more since there's no point in keeping your savings in the bank if they aren't earning a reasonable return. That creates demand which in turn creates inflation which is now viewed as a good thing provided it doesn't exceed the EU's 2% limit.

Without QE, the EU risks deflation which in turn causes job losses due to the lack of demand.

[buddy]

"What's happening to the Euro"

...i truly hope what is happening is the Euro's demise along with that anti-democratic, sovereignty stealing monster called the European Union that created this failing currency.

[TommyUK1960]

With QE its only going to get weaker. A lot weaker. The Thai baht is no going down any time soon, They just maintained 2% interest rate that created more strength in the Thai baht.

Not looking good for EURO.

[PattayaPhom]

Sterling, $US both took a battering after QE and the Aussie $ has declined due to their economy. The Euro has come out rather unscathed the past 7 years so guess it is now their turn. Its anyones guess but with the start of QE and all that's happening with Greece and Spain about to follow don't be surprised at less than 30...most saw at least 25% shaved off after QE so that brings the Euro to 27 if history is anything to judge by.

[Xircal]

With QE its only going to get weaker. A lot weaker. The Thai baht is no going down any time soon, They just maintained 2% interest rate that created more strength in the Thai baht.

Not looking good for EURO.

The Euro seems to be heading north again: http://www.ecb.europa.eu/stats/exchange/eurofxref/html/eurofxref-graph-thb.en.html

I think it largely depends on what kind of deal is struck with Syriza. I can't see the troika backing down on the debt repayment issue, but they could give the Greeks more time to pay.

In any event, if Tsipras wants the country to remain in the Eurozone, his only choice will be to stay on the beaten path. Either that or get the printing press's rolling to churn out large quantities of drachmas fast.

[DonaldBattles]

Socialism in Europe plus dragging in all of the eastern countries has finally got caught up with in the globalized economy. When Greece defaults of 240BE$ debt it will be followed by Spain and Portugal. The Euro QE is more of a joke than a reason for the currency falling. God only knows what the money changers of the world are up to. Look how the Australian, NZ and Canadian $ has collapsed.

For the strength of the Baht the BOT says that inflow of cash into the market is keeping strong. I am sure this is the case. As area currencies fall the Baht increases. With the Martial Lawyers running the place I would be reluctant to invest

[maidee]

the euro is waiting to drop to the level of the dollar

[advancebooking]

The aussie dollar is declining rapidly and in todays SMH paper they say it could be at these levels for the next 2 yrs. Its pure speculation and currencies are so volatile. Its currently falling this week as the market is predicting a further interest rate cut in the nanny state

[BlueSkyCowboy]

It will go down to the Greek Drachma. Retierees who are paid in EURO, better look for a cheaper country to live

[tsigane]

It's called competitive debasing of currencies. It all started with the USD printing press in overdrive (how Bernanke saved the world). Japan had been "fighting" deflation for a long time and Abe came to power by promising to print yen. EU just joined the party and like someone said, this is all just the beginning.

Inflation is a no-brain solution for the greedy governments around the world.

It has always and it will always work. Get into debt, embezzle money, then screw the savers and taxpayers. The sheeple does not perceive inflation as therft, which it is.

Thailand will eventually succumb to this temptation too. It's not matter of if, but when.

[ggt]

It's complicated...almost all fiat currencies are under attack due to a slump in world economies...the two major players...the US and China are in a slump.(do not believe all the hype about improving economies)...Worldwide debt is beyond comprehension and can not be repaid...countries are printing money just to buy bonds of other countries to keep them from going bankrupt...and Europe's economy is anemic...unhealthy...the Swiss pulled out of any association with the Euro and so out of desperation the Euro is going to be printed to ease the tension of a lack of economic growth by artificially introducing money where commerce is lacking...

The future looks rather bleak for all fiat currency(paper money)...the US dollar is a kind of last man standing at the moment but will likely start heading south sometime this year...

Edited January 30, 2015 by ggt

[Jimbolai]

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It's called 'Quantitive Easing' and comprises of the ECB buying its own bonds and those of private investors to stimulate the EU economy. That negatively affects interest rates and the value of the Euro.

The theory is that if interest rates are negative, or close to that figure, consumers will start to spend more since there's no point in keeping your savings in the bank if they aren't earning a reasonable return. That creates demand which in turn creates inflation which is now viewed as a good thing provided it doesn't exceed the EU's 2% limit.

Without QE, the EU risks deflation which in turn causes job losses due to the lack of demand.

Ok, what is QE?

[PJcm]

I am always amazed by these question original OP. The QE by the ECB is to stem off the possibility of deflation of the Euro. For anyone that gets paid in another currency, you follow it but you have no control you never will. There is no reason to complain or rejoice in the currency market, My father who was a currency trader for a large Wall street Bank said; It's easier to eat soup with a fork than to make money in the currency market.

[johnmcc6]

We are seeing the inevitable demise of socialism. Everyone finally ran out of other peoples money. The last gasp is that unelected rable they call the uropean Union. Fasten your seat belts. It will be a long ride.

[jaywalker]

Vote for LIBERALS in Greece.

Swiss just un-pegged from the Euro.

[eggers]

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The aussie dollar is declining rapidly and in todays SMH paper they say it could be at these levels for the next 2 yrs. Its pure speculation and currencies are so volatile. Its currently falling this week as the market is predicting a further interest rate cut in the nanny state

Agree....all the pundits take a guess; whether they're right or wrong, still have a job!!

[muffy]

The Euro was overvalued , reality sets in . I see 83 cents to the mighty dollar .

Edited January 30, 2015 by muffy

[DonaldBattles]

I predict the the Fed in the USA will increase interest rates before June 1. This will also increase the value of the dollar. I don't see the dollar going down in the near future. Most economic indicators show the USA coming out of the recession.

[Saan]

<script type='text/javascript'>window.mod_pagespeed_start = Number(new Date());</script>

The aussie dollar is declining rapidly and in todays SMH paper they say it could be at these levels for the next 2 yrs. Its pure speculation and currencies are so volatile. Its currently falling this week as the market is predicting a further interest rate cut in the nanny state

Agree....all the pundits take a guess; whether they're right or wrong, still have a job!!

Another bean counter recently predicted in the SMH that AUD would again achieve parity with the USD later this year.

I hope he is right but whose guess do you follow?

[Farang99]

Sterling, $US both took a battering after QE and the Aussie $ has declined due to their economy. The Euro has come out rather unscathed the past 7 years so guess it is now their turn. Its anyones guess but with the start of QE and all that's happening with Greece and Spain about to follow don't be surprised at less than 30...most saw at least 25% shaved off after QE so that brings the Euro to 27 if history is anything to judge by.

You might also ask what's happening to sterling? It has been dropping steadily, 1 baht at a time, for some months now - see:

http://www.x-rates.com/graph/?from=GBP&to=THB

[FredNL]

Europe is going bankrupt.

They even have new EU VAT rules concerning companies outside the EU (Thailand). If a Thai website sells digital goods to a European customer, the Thai website has to pay taxes to the EU country where their customer is based.

The law applies to “broadcasting, telecommunications, and e-services that are electronically supplied”. The e-services definition applies to a surprising number of things, including…

• images or text, such as photos, screensavers, e-books and other digitised documents e.g. PDF files
• music, films and games, including games of chance and gambling games, and of programmes on demand
• online magazines
• website supply or web hosting services
• distance maintenance of programmes and equipment
• supplies of software and software updates
• advertising space on a website

The rules apply to all sellers providing digital services to customers within the EU, no matter where in the world the seller is located.

Quite how this will be enforced is unclear, but we are hearing noise that other countries will follow suit if this is successful – so unless we stop this now, expect selling outside your own borders to get even more complicated in years to come!

More info:

http://euvataction.org/key-facts

http://www.ecwid.com/blog/how-the-new-value-added-tax-guidelines-for-selling-digital-goods-affect-your-online-store.html

I wonder how they will enforce this. My companies aren't planning to pay one penny / cent

[elgordo38]

With QE its only going to get weaker. A lot weaker. The Thai baht is no going down any time soon, They just maintained 2% interest rate that created more strength in the Thai baht.

Not looking good for EURO.

Yeah you can throw in a bunch of other currencies as well. You would think as an export and tourist country (you have to buy bahts to come here) they would be trying to weaken their currency. Our Canuck buck is taking a sh*t kicking to. I brought a good bunch over in October and now down another 4 bahts will get on the blower to Forex and add to it to hopefully ride out the storm.

[elgordo38]

We are seeing the inevitable demise of socialism. Everyone finally ran out of other peoples money. The last gasp is that unelected rable they call the uropean Union. Fasten your seat belts. It will be a long ride.

Yes Socialism is dying. Socialism is the last safety net for the poor and down trodden so what will happen to them?. We do not all have a Bill Gates or Warren Buffett mentality. Maybe we could enslave them more like lobotomize them all to do the bidding of the 85 people that control half the worlds wealth(in another 50 years all of it oops the world will not last another 50 years my mistake). Maybe we could make them into a fuel to fill up our monster cars with or fuel our rockets to Mars. After robotics and 3D printing and all the medical marvels (that make us live longer for what?) further reduces the working masses by 50% or more what will these poor unfortunates do? Yes we are moving towards a Soylent Green way of life only the little cakes will be made from the living not the deceased and yes it will be a long ride to the bottom.

[sandyf]

Sterling, $US both took a battering after QE and the Aussie $ has declined due to their economy. The Euro has come out rather unscathed the past 7 years so guess it is now their turn. Its anyones guess but with the start of QE and all that's happening with Greece and Spain about to follow don't be surprised at less than 30...most saw at least 25% shaved off after QE so that brings the Euro to 27 if history is anything to judge by.

You might also ask what's happening to sterling? It has been dropping steadily, 1 baht at a time, for some months now - see:

http://www.x-rates.com/graph/?from=GBP&to=THB

Unfortunately the pound to the baht tends to mirror the pound to the dollar, not a case of the pound going down but the dollar going up.

In the last 3 months the dollar index has risen from the high seventies to the mid nineties but there is nothing in the financial data to justify this significant change in such a short time. Some analysts seem to think it is tied to the reduction in oil prices but if it is the dollar's good fortune may be short lived. The Chinese have increased their reserves to 30 days and have stated an intention of going to 90 days, that being the case the market surplus will soon dry up.

We may well see oil prices heading north by the middle of the year providing a boost to the pound and the euro.

[Nickhick]

It's called 'Quantitive Easing' and comprises of the ECB buying its own bonds and those of private investors to stimulate the EU economy. That negatively affects interest rates and the value of the Euro.

The theory is that if interest rates are negative, or close to that figure, consumers will start to spend more since there's no point in keeping your savings in the bank if they aren't earning a reasonable return. That creates demand which in turn creates inflation which is now viewed as a good thing provided it doesn't exceed the EU's 2% limit.

Without QE, the EU risks deflation which in turn causes job losses due to the lack of demand.

[Nickhick]

With QE its only going to get weaker. A lot weaker. The Thai baht is no going down any time soon, They just maintained 2% interest rate that created more strength in the Thai baht.

Not looking good for EURO.

Yeah you can throw in a bunch of other currencies as well. You would think as an export and tourist country (you have to buy bahts to come here) they would be trying to weaken their currency. Our Canuck buck is taking a sh*t kicking to. I brought a good bunch over in October and now down another 4 bahts will get on the blower to Forex and add to it to hopefully ride out the storm.

it will be one to one with US dollar soon