12th March 2015 - Euro Dollar Parity? Possibly Very Soon

March 12, 2015 - PRLog -- Stock Port Associates is one of the world’s largest and most established offshore investment firms operating within a tax-favorable jurisdiction. Whether it’s dealing with new regulations, setting up an offshore presence, attracting new investors or identifying independent directors, we have the expertise to assist you.

12th March 2015 - Euro Dollar Parity? Possibly Very Soon.

Major Indexes as of 11th March 2015

FTSE 100 - 6,721.51 (+0.28%)

DAX - 11,805.99 (+2.66%)

CAC 40 - 4,997.75 (+2.37%)

European markets soared higher yesterday after the Euro dropped to just $1.0560, a 12 year low, making European stock fantastic value for money.

Germany, France and Italian indexes all saw gains of over 2% the week that the European Central Bank started its QE program, injecting billions of Euros into the market and seeing currency traders selling Euros and buying Dollars.

The Euro has lost over 20% since July last year, the point when the US looked to be winding up its own QE scheme. Now that the Federal Reserve is looking to increase rates, the Dollar is the currency of choice at this time as appreciation is almost guaranteed.

As the Euro slips further many analysts are calling for parity before the end of the year and a Deutche Bank analyst has even been quoted as predicting 0.85c by 2017.

It would be hard to imagine that the ECB and EU would allow the Euro to slip below parity as the psychological damage that would spread to the markets would be immense.

Europe is in the throes of a potential embarrassment. The Union is not working as it should and many of the stronger states are now looking to protect themselves from the impact of other member, such as Greece having seriously negative effects on their own, relatively stable economies.

If Greece persists in stalling its reforms and ends up leaving the Euro that may pave the way for other members to look to leave the Eurozone before the EU falls further into deflationary recession.

Central Banks globally are fighting to ease monetary policy and see growth globally. With over 20 banks cutting rates already this year and more to come as the year progresses, it doesn’t look like the Dollar will show any signs of slowing down.

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