Originally Posted by goboatingnow
Firstly the Greek issue is having no bearing , Greece is 2% of the eurozones GDP, this issue will get resolved within the next few months
Currencies tend to undershoot so I suspect some strengthening of the euro to reoccur. Secondly the indications are that QE will not be effective and I suspect the Germans will put a stop to the ecb . That will cause a strengthening of the euro.
However I think the ecb would certainly like to see the euro well below $1:25
Oh how I have to disagree. Currency values are affected by a multitude of things. There is what is called fundamentals and then there is sentiment. In many respects sentiment more often than note rules the day and dictates price
movements more than fundamentals. But sentiment itself does not develop in a vacuum and it itself flows from fundamentals. However it is usual that sentiment can rule
markets either ahead or behind fundamentals for a long time. Some would say that for far too long the bullish sentiment towards the Euro that saw the Euro for over a decade higher than the US dollar did not take into account economic realities. In short there was a disconnect between sentiment and fundamentals.
The Greek debacle has caused a shock in he sentiment bubble and has caused many in the financial community around the world to reassess the fundamentals of the Euro. And on analysis many see the fundamental structural flaws in socialist leaning Europe
and see that economically there is no case for the Euro to be weighted higher than the US dollar.
So i am sorry to say that your statement that the Greek debacle did not and would not have an effect on the Euro is not credible. I would add, lets see what happens in 3 months after their recent extension expires. And lets not take forget the other basket case, Spain
I could go on but no point. Todays huge drop in the value of the Euro only supports my position.
Its a great day for US buyers of new and pre-owned french boats. Nothing will now halt the inevitable slide in the sale price
especially of pre-owned boats which will be very painful for Caribbean charter
operators needing to turn over their fleets. Others that can be hurt are those who bought new boats and have them in charter
programs who will see a much lower actual price in the relation to the US dollar when they come to sell.
Good days ahead as the dollar is set to surpass the value of the Euro for dollar owners wanting to buy Euro boats.