Newbie Question - I dont Get the Euro!!

[davidinuk]

Hi All,

I'm new to this forex thing and would extremly grateful for a little advice!

I don't get how the EUR/USD can be going up if people are frightened about the future of the Euro!

I'd be most grateful if somebody an explain this to me, or have I got it completly wrong?!

 

[Splitlink]

Speculators against speculators.

 

[Barramundi]

There is plenty to be frightened about regarding the USD too, particularly in respect to QE, so it's sort of like comparing two pieces of rotten fruit really isn't it and which you want least of?

 

[davidinuk]

There is plenty to be frightened about regarding the USD too, particularly in respect to QE, so it's sort of like comparing two pieces of rotten fruit really isn't it and which you want least of?

I would have throught that the chance of the Euro going down the pan would make it worse against the USD any day, but it seems those in the know think otherwise.

Which currencies vs Euro are on a strong trend following the Euros woes?

 

[Masquerade]

I gave up trying to think about things like this. Long run you're very correct. On a day-to-day basis it seems to make little difference. There's a lot of people out there that have an interest in keeping the euro at a high level. The euro has gone through so much over the last year or so and it's still pretty strong, it should tell you enough . Something will go wrong eventually, it's just a matter if it's Greece/Portugal/Spain/Italy/Germany/Ireland or something else.

 

[Splitlink]

I gave up trying to think about things like this. Long run you're very correct. On a day-to-day basis it seems to make little difference. There's a lot of people out there that have an interest in keeping the euro at a high level. The euro has gone through so much over the last year or so and it's still pretty strong, it should tell you enough . Something will go wrong eventually, it's just a matter if it's Greece/Portugal/Spain/Italy/Germany/Ireland or something else.

I live in Spain and I believe that it will pull through if left alone by the markets. I don't know whether that will happen once the markets start looking for the next possiblility to go down the pan. The Spanish hope that the Greeks improve for that reason--it's good to have another country as a buffer while we are getting sorted!

 

[Masquerade]

But as soon as one country gets patched up the focus will turn to another. Then by the time that settles down a few months later it's back to speculating that Greece won't be able to repay its debts. Then there will be more denial, then they'll finally admit they can't. Bring on more default talk and the circle goes on...

 

[Martinghoul]

It's not only about the future of the Euro... It's also about the present, hence how well it's held up.

 

[BeginnerJoe]

The Chinese are buying Euro debt. They have 1 trillion in $ debt. Guess where their other 2 trillion is going into - stuffed in the mattress ?