Sandra Fickweil
02-21-2009
9:00 pm
The effects of the economic crisis can be seen in all European countries. Worries about the "16-nation euro zone" and the emerging economies of eastern Europe have weighed on the Euro (European currency). According to the German finance minister Peer Steinbrueck, couples of European economies have some trouble, which have to be bailed out by the bigger and more wealthy ones.
However, CMC Markets analyst James Hughes noted, that the common European currency appeared likely to stay above the "symbolic $1.25 threshold".
According to Matthew Strauss, senior currency strategist at RBC Capital in Toronto, markets still react to the latest news saying that eastern Europe markets would hit the local subsidiaries of major Western banks and potentially hurt their corporate parents, primarily in Austria, Italy, France, Belgium, Germany and Sweden.
In the United States on the other hand, there was a mixture of good and bad news: A private sector measure of economic activity raised by 0.4 percent in January, the second straight monthly increase. According the Philadelphia Federal Reserve, America's manufacturing sector weakened further in February, the unemployment number however stayed on the same level as the week before. After the news warned that conditions in the world's second-largest economy-Japan- were unlikely to improve anytime soon, the yen decreased and the dollar climbed up to 94.40 Japanese yen.
As we can see, there is an up a down in our currency. I think it is very interesting to see in this article how much power the news has. As soon as there are bad news, not only stock prices but also currency is falling which has enormous effects for the markets. What I liked in this article is that effects of the falling economy were shown in looking at European and American markets.
http://www.iht.com/articles/ap/2009/02/19/business/NA-US-Dollar.php
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