Euro dollar values move on the market
After an aggressive plan was put into place to stabilize the value of the Euro, the Euro dollar values began to move on the market. The plan was unveiled by the IMF and European Central Bank to put a massive reserve in place to head off a European debt crisis and aid in the Greece bailout. The Euro climbed after a lull, and several other major currencies experienced huge swings. It may not mean too much at the moment, as it doesn’t mean that a modest gain on the Euro means instant money will rain from the sky.
Euro dollar gain only slight
The Euro dollar comparative value, or how much one Euro is worth in American dollars, made only a slight gain, according to the Wall Street Journal. The Euro was at $1.2732 on Friday, but on Monday, May 10 moved up to $1.2775. The gain amounted to only 0.2 percent, and the Euro is actually down 10.5 percent so far this year. Some other currencies gained along with the Euro, like the Australian Dollar, and some others tumbled, such as the Japanese Yen.
Stock markets rebound
Obviously, aside from people who hold more wealth in Euros than dollars, another beneficiary of the Euro dollar climb was the world stock markets. The Dow Jones jumped over 400 points, Standard and Poor’s saw an increase of over 4 percent for the day of trading after news of the European bailout. It would seem that some measures of recovery are beginning to take place.The recent near crash of the Dow Jones due to a typo seems to have been abated by good news from the European Central Bank and the International Monetary Fund.
Is the global crisis over?
The global crisis is not over, not by a long shot. The Greece bailout has yet to even be enacted, never mind any gains or recovery realized. A Euro dollar gain, and especially one so modest, doesn’t mean its time to break out the Champagne just yet.