Things had been already higher for the euro | EUROtoday

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Selfie in entrance of a monumental backdrop: If the euro is weak, the journey to the Grand Canyon turns into dearer.
Image: AP

The European widespread foreign money will most likely proceed to lose worth in comparison with the greenback within the medium time period. This can be associated to the struggle in Ukraine and safety in Europe.

SOf course, rate of interest variations play a job in foreign money developments. Investors go together with their cash the place they’ll get extra curiosity with comparable safety, or maybe simply count on this to occur. The foreign money that higher meets these circumstances will likely be in better demand and can rise, whereas the opposite will fall.

So far so good. What initially sounds considerably unspectacular seems to be explosive. It's about “comparable security”. Anyone who can obtain roughly the identical return in two completely different foreign money areas will often select the area the place the safety is larger.