US Dollar v Euro – Comparative analysis .
1 Value of the US Dollar compared to the Euro .
2.2 Factors affecting the pair of currencies .
2.3 Can currencies be forecasted? .
3. Conclusion .
References .
1. Introduction.
The US dollar is used for measuring the value of petroleum and gold, goods that are of primarily importance for global economy. Apart from its superior position in markets around the world US dollar seems as more prepared, compared to other currencies, to face long term economic pressures. Reference is made in particular to Euro, a currency that has challenged the hegemony of US Dollar in global market. Current paper provides a comparative analysis of the two currencies. Emphasis is also given on the factors which have mostly affected the performance of these currencies, especially in regard to 2009 onward. The financial recession of 2008 and the Euro zone debt crisis, that followed, are used as key events for the evaluation of the potentials of the two currencies in the future. In general, the US dollar is proved to be stronger both in case of unexpected turbulences and in case of long term economic downturns.
2. US Dollar v Euro – Comparative analysis.
2.1 Value of the US Dollar compared to the Euro.
The value of the US dollar toward the Euro has faced important fluctuations. The turbulences in the global financial market, as related to the Euro Debt Crisis, have led to the decrease of the value of the Euro, compared to the US dollar. Indeed, In January 2012 the value of Euro reached the $1.274 (Index Mundi 2012), which is rather low compared to the currency's value in the past. For example, in January of 2011 the value of the Euro was estimated at $1.3371 (Index Mundi 2012). Up to July 2012, the value of the Euro towards that of the US dollar was significantly decreased a fact that was related to the continuous deterioration of the Euro Debt Crisis.