VW crisis effect on the Euro
VW crisis effect on the Euro
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Discussion

pattyg

Original Poster:

1,384 posts

257 months

Friday 25th September 2015
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Crystal Ball time again but what are your thoughts on whether the Euro will lose value?

nickfrog

25,399 posts

247 months

Sunday 27th September 2015
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Seems it has been bouncing back this week. I doubt a microeconomics event like the VW thing could have any measurable effect on macroeconomics.

ChrisCanning_Argentex

19 posts

134 months

Monday 28th September 2015
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Like Nickfrog says, the VW will have little/no effect on the strength/weakness of the euro.

Most forecasts still suggest EUR weakness over the coming weeks/months. Att current levels against the Pound 1.35/1.36(ish) it seems to be at the bottom of the current range and may soon swing bay towards the higher end of the range (1.38/1.39 ish).

It will take something significant to break out of this range, and most banks are suggesting the next break will be higher towards 1.40 and beyond.

Against the US Dollar, the Euro is also expected to weaken. With Janet Yellen suggesting that conditions in the US are suitable for an interest rate hike this year, the dollar could push back towards the recent lows of around 1.05ish.

Chris Canning.