Best Reason to Buy Euros?
September 1, 2010
The best reason to buy euros is because this man likes ‘em! Premier Wen Jiabao, the leader of China said last night that China and Western Countries should work together to enhance the world’s confidence in the euro and the European Union’s economy. China will be working directly with Spain on this initiative as Wen invited Chinese investors to invest in Spain’s financial, renewable resources and electric cars industries, the report said.
According to the WSJ, Wen has made similar comments earlier this year on the euro’s importance, such as in mid-July when he met German Chancellor Angela Merkel he said Europe remains a key market for China’s foreign-reserve investment. China has said it aims to make better return on its vast holding of foreign-exchange reserves and ensure safety of its investment of the foreign-exchange assets.
Posted in 2009 eurusd forecasts, eur/usd
content rss
September 1st, 2010 at 1:03 pm
But would it be possible to see EURO replacing USD as the standard international currency?
Honestly I don’t see much reasons why the EURO should worth more than the USD in the first place. And I’m not expecting to see EURO as a stable currency in the next years.
September 2nd, 2010 at 4:31 am
Well, there are some reasons why the single currency could do better than the USD in the future.
In the US, QE is the only hope to prevent return into a recession (or at least to postpone it), because folks have lots of debt and no savings. In the EU, on the contrary, people have savings (even the Greeks have roughly € 300 bln on their savings accounts) and there’s no ground for QE in the EU Treaty (the Crysis Fund is a temporary matter and is meant more to burn up speculators shorting the EURO and betting on PIIGS states to default). Not meaning that Europe can escape the double dip if it happens, but, in my opininion, the sick man of the world is the US with trillion $ deficit (California is in much worse condition that Greece for example). Much merit for the recen slump in the Eurozone debt market is driven by manipulation by the US rating agencies, which is a problem to be dealt with in the future.
All in all, I am pretty confident in the Euro with memberstates budget deficits coming under control and leaving the policy makers more freedom to act in the future if necessary, which is not the case with the FED running out of ammunition.
September 3rd, 2010 at 5:40 pm
Its interesting(funny) to see how people change their opinions/stance, couple of weeks(months) ago there were talks of eur-usd parity. hahaha..
What a bunch of idiots!
Walter.
September 3rd, 2010 at 9:11 pm
[...] Kathy Lien provides “the best reason” to buy Euros. [...]
September 4th, 2010 at 1:11 am
[...] Kathy Lien provides “the best reason” to buy Euros. [...]
September 4th, 2010 at 9:01 am
[...] Kathy Lien provides the best reason to buy Euros. [...]
September 4th, 2010 at 10:03 am
[...] Kathy Lien provides the best reason to buy Euros. [...]
September 4th, 2010 at 10:36 am
[...] Kathy Lien provides the best reason to buy Euros. [...]
September 4th, 2010 at 4:45 pm
[...] Kathy Lien provides the best reason to buy Euros. [...]
September 4th, 2010 at 8:35 pm
[...] Kathy Lien provides “the best reason” to buy Euros. [...]
September 5th, 2010 at 1:27 am
[...] Kathy Lien provides the best reason to buy Euros. [...]
September 9th, 2010 at 3:19 pm
Hi, I have a question, instead of a comment. I’m leaving Canada but I’ll leave beind about CAD$12000 for when I come back in one year. I realize the CAD is getting stronger. I thought about buying all euros or USD. What do you think?
Thank you
September 23rd, 2010 at 12:42 pm
[...] Best Reason to Buy Euros? | Kathy Lien [...]
October 1st, 2010 at 9:23 am
Hello Breno,
If you keep the CAD, you won’t loose nothing. If you exchange them, you can win or loose. I would keep them - with the instability of the markets, one year is a lot of time and you can loose a lot…
October 17th, 2010 at 7:25 am
Thank you for your reply.
Breno