After a very strong jobs report, with 295,000 more openings in February – the 12th straight month of growth over 200,000 for the first time since 1994 – the dollar is surging against the euro.
After falling below $US1.10 yesterday for the first time in 11 years, the euro is now down below $US1.09, slipping another 1.29% as of 1 p.m. GMT (9 a.m. ET).
The trade-weighted euro (measured against a basket of currencies, based on how much the eurozone trades with them) has gone through the floor.
Here’s how that looks:
It dropped 5.1% in 2014 as a whole, and it’s already down 6.6% in the first ten weeks of 2015.
That steep drop is also partly due to the sudden and rapid rise of the Swiss Franc earlier in 2015.
The strength of the US economy, shown by Friday’s jobs report, makes it seem even more likely that the Federal Reserve will start hiking interest rates this summer.
With the European Central Bank only just launching its QE programme, and with years of relatively easy policy to come, the euro is likely to keep falling against the dollar, which is good news for European exporters.
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