Welcome to DU!
The truly grassroots left-of-center political community where regular people, not algorithms, drive the discussions and set the standards.
Join the community:
Create a free account
Support DU (and get rid of ads!):
Become a Star Member
Latest Breaking News
General Discussion
The DU Lounge
All Forums
Issue Forums
Culture Forums
Alliance Forums
Region Forums
Support Forums
Help & Search
Economy
In reply to the discussion: Weekend Economists Revere Two Kings January 16-19, 2015 [View all]Demeter
(85,373 posts)3. The Swiss Just Made Things Worse for the Euro
http://www.bloomberg.com/news/2015-01-16/euro-s-march-lower-getting-boost-from-swiss-bankers-currencies.html
The euro is shaping to be the biggest casualty of Switzerlands decision to scrap its currency cap.
Soon after the Swiss National Bank unexpectedly ended its three-year policy of keeping the franc weaker than 1.20 per euro, bearish bets on Europes common currency soared. While setting a record low versus the franc yesterday, the euro also plunged 3.5 percent against a basket of 10 developed-nation peers, the most since its 1999 debut, and reached an 11-year low against the dollar today.
The SNBs decision removes a key pillar of support for the euro, boosting the odds that its recent slide will accelerate. Companies from Goldman Sachs Group Inc. to Pacific Investment Management Co., the worlds biggest manager of active bond funds, have in recent days talked about the euro falling to parity with the dollar, a 14 percent decline from its current level.
MORE
The euro is shaping to be the biggest casualty of Switzerlands decision to scrap its currency cap.
Soon after the Swiss National Bank unexpectedly ended its three-year policy of keeping the franc weaker than 1.20 per euro, bearish bets on Europes common currency soared. While setting a record low versus the franc yesterday, the euro also plunged 3.5 percent against a basket of 10 developed-nation peers, the most since its 1999 debut, and reached an 11-year low against the dollar today.
The SNBs decision removes a key pillar of support for the euro, boosting the odds that its recent slide will accelerate. Companies from Goldman Sachs Group Inc. to Pacific Investment Management Co., the worlds biggest manager of active bond funds, have in recent days talked about the euro falling to parity with the dollar, a 14 percent decline from its current level.
MORE
Edit history
Please sign in to view edit histories.
77 replies
= new reply since forum marked as read
Highlight:
NoneDon't highlight anything
5 newestHighlight 5 most recent replies
RecommendedHighlight replies with 5 or more recommendations
It’s time we reconsidered the principle that states must always repay their sovereign debt
Demeter
Jan 2015
#2
WAPO: Holder limits seized-asset sharing process that split billions with local, state police
Demeter
Jan 2015
#19
The Elvis Presley coverup: What America didn’t hear about the death of the king
DemReadingDU
Jan 2015
#48
As young minds leave, industrialized eastern Ukraine faces brain drain | Al Jazeera America
MattSh
Jan 2015
#31
Ukrainian men are jumping the ship for the Russian shores ahead of mobilization deadline - Fort Russ
MattSh
Jan 2015
#32
Russia may lift food import ban from Greece if it quits EU - Russian agriculture minister
Demeter
Jan 2015
#70