EURO/USD parity changed a lot lately, who is the real winner?
Let us summarize the basic reason behind EURO USD parity before we jump into any conclusions. This should be helpful for those who have no idea about what exactly forced euro to face the weird economic turmoil which on a whole looked something similar to what happened with USD in 2008.
Being a bit harsh one can judge Greece to be the root cause of the current issues being faced by EURO. The age long debts on which Greece has been floating on (without even worrying a bit about what the results might be) has forced all other countries related to her into a turmoil which could easily last long enough than one might guess. EURO being one common currency has (unwillingly) forced all those using EURO to help Greece come out of its huge debts. Though in the long run they might successfully achieve their goals yet as of now this has resulted into EURO losing its grip over the market and its trust on the investors who had been investing into it with closed eyes. Now you know how EURO has touched parity with USD though not long back it used to sail above its counterpart?
Judging the other side of the coin one finds that USA messed up its economy just because of the overconfidence they were enjoying on their style of working. To summarize, banks in USA were giving away money to those who wanted it without any future planning. Slowly a time came when money had suddenly vanished and USA was left hanging nowhere. They did work hard to come out of the so-called international turmoil and they did succeed to an extent. But, everyone must understand that such serious issues don’t vanish completely; they are just suppressed!
Comparing the two mess-ups explained above it won’t be easy to judge who will be the winner. EURO is currently facing issues (and touching parity with USD) while on the other hand USD is said to be out of the so called economic turmoil (though inside stories might present a totally different perspective.) One can consider USD to be stronger than EURO but on a whole (and in the long run) I consider both of them to be lost in themselves trying hard to recover from the heavy jolts that they have received. It’s a deuce!
