Currency Variation & Stock Price

Stock prices are discussed a lot. Currencies a lot less - though variations can be equally dramatic. The Euro has held values as priced in US dollars from a minimum of 0,84\$ in Nov 2000 up to 1.6\$ July 2008. At the time of writing it is priced at 1.17\$ which is similar to valuation at launch in Jan 1999. The short term variations can be equally dramtic.

In the year to date, the € as priced in \$ has risen by around 10%. Significantly, at least to me, this mirrors exactly the “rise” of the SP500 in this time frame. Priced in € the SP500 has completely stalled in the first 6 months of 2017. The SP500 is, however, priced in \$ and as such is nominally doing perfectly well in 2017. No major alarm about a stalling US stock market. The 10% depreciation of the $ in € terms is also notable absent from headlines.

Gyrations of the GBP with various crises also does not get much coverage. I wonder is there a critical psychological point where this does become important. Crossing parity I think is something that would penetrate through to a headline. Maybe this 1€ having greater value than 1GBP would provoke some debate in Brexit?


blog/currency_variation_stock_price.txt · Last modified: 2019/09/10 03:42 (external edit)
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