I saw this chart in TheParisBlog. I haven’t been following the EURO too closely, just keeping my head in the sand because it’s out of control and we just know that on our upcoming trip we’ll be almost doubling shop window prices to get the dollar equivalent. That will mean a few fewer croissants, but it will take even more EURO inflation to keep us away from Paris for very long.
This post, however, has us wondering whether we’ll hear a lot more about a EURO correction when we’re over there next week. For a long time, every economist and banker we know has said that the EU can’t tolerate an over-valued EURO for too long. Yet, it has continued to rise, topping out in May and at the beginning of August at $1.59, before a precipitous $.08 drop in the last two weeks (as shown in this chart at Yahoo Finance).
Of course, a correction does not a devaluation make, but I’m at least grateful for the timing a week before our summer Paris holiday.
and it fell further to $1.47, before coming back just a half a penny on Friday 8/22. Monday marks the return to work for most of France, and much of Europe, and the markets will be more active.