Question

Using end-of-year annual data for 2014-2019 found on the internet (you'll need to search for these data, but the information is widely available), identify how the value of the euro has changed over the past five years in comparison to dollar. In your opinion, has the euro been stable and would you consider starting a small business in the European Union. Any answer here is acceptable so long you as adequately and clearly support your answer.

Answer 1

Average price for an Euro has been ranging from 1.10 to 1.18 in past 5 years as it can be seen that, From the beginning of 2015, Euro has started to show strength against Dollar but once the brexit happened,the gain of Euro against the dollars was wiped off as it was expected by the Global community that it would lead to depreciation in the European currency due to underperformance of European union after oust of Britain from European union which was Brexit.

Euro has since not able to gain the relevant premium, it used to command against Dollars in earlier times, because there is a significant underperformance from the economy and there is also significant out performance on the part of the United States economy which helped the Dollar to gain strength against Euro.