A resurgence in the euro after recent elections in Europe could leave it top dog in global currency markets. Understanding what that means for the U. S dollar will be pivotal for investors that operate in greenbacks.
Bloomberg’s recent headline ‘This Could be the Euro’s Best Year in a Decade’ shows signs that all eyes are watching Europe.
Currently, the Euro has smashed to a six-month high with aggressive talk coming from the central banking crowd on the European continent.
German Finance Minister Wolfgang Schaeuble, arguably one of the most influential voices in Europe, said that he views the need to further increase in integration in Europe. The German minister went so far as to hint at creating a ‘parliament’ for the euro currency bloc.
In international currency exchanges things are beginning to change. The world’s major reserve currency, the U. S dollar, has seen investors begin to wake up to the reality of a lackluster expectations from the White House.
Impact of the U. S Dollar on Europe
The U. S dollar is now back to levels prior to the November election.
Does that mean a the euro currency surge caused it? No.
This post was published at Wall Street Examiner on May 26, 2017.
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