Euro Rises to 1.50
Posted on February 27, 2008
Filed Under EUR/USD |
The euro has finally decided to break out above 1.50 and assuming there is not too much nervousness then the next levels will be 1.52 to 1.54, although this morning’s comments by a member of the ECB were quite interesting. Joaquin Almunia (is he a relative of the Arsenal goalkeeper, Manuel Almunia?) is the EU’s economic and monetary affairs commissioner stated that excessive movements in the exchange rate were unwelcome and “a product of supply and demand forces and games”. Also that “excessive volatility in the evolution of exchange rates” would be unwelcome.
However, he appeared to be unconcerned by the strength of the euro, stating that taken together with the eurozone’s sound fundamentals they are proving helpful during the current, ongoing period of financial turmoil. We will see whether this view will be maintained as the euro continues to rise.
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