ARTICLE SYNOPSIS ...The Euro's True Colors by Walter Bressert and Doug Schaff How do you analyze the Euro, a currency that sprang to life with no price history? How do you analyze a full-fledged currency that came into being overnight? Despite its literal lack of price history, millions of foreign currency market participants -- importers, exporters, investors, risk managers, not to mention others -- instantly had exposures, long or short, the moment the Euro took its first breath. There is no doubt that fundamental factors will determine the Euro's value, as they have for the German mark, the French franc, and...
ARTICLE SYNOPSIS ...The Euro's Weekly Cycles As a followup to last month's introduction to the newborn European currency, here's what may happen to the Euro. n January 4, 1999, the 40odd years of planning and 10 years of political and economic work paid off as the Euro began trading in a calm, orderly manner. But what's the bottom line? How will improved efficiencies from a single currency affect Europe's competitiveness? When will the Euro's status as a reserve currency begin to shift demand away from US dollars? The brandnew European Central Bank (ECB) is determined to establish its credibility. Europeans, on t...