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Tuesday, October 20, 2009

EURO'S CLIMB CASTS SHADOW OVER EU'S ECONOMIC RECOVERY

The euro's advance in recent months has come at a critical junction for the 16-member eurozone as it battles to emerge from what has been dubbed the Great Recession. After gaining about 20 per cent against the dollar since the early months of 2009, Europe's common currency is now within reach of breaching the key 1.50-dollar barrier.
"The euro is currently a victim of its own success," said ING Bank currency analyst Chris Turner. "Global investors have distinctly fallen out of love with the US dollar and there are very few alternatives."
Success always brings problems, but it's not bad for a currency written-off by right-wing eurosceptics as a toilet currency (Trevor Kavanagh in the Sun). The pound has continually weakened against the euro since its inception slipping form 1.65 €uros to a pound to 1.10 €uros today.

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