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EURUSD value question

  • #1
  • First Post: Jan 1, 2012 1:07pm Jan 1, 2012 1:07pm
i'm not good in maths.

Lets say EURUSD is at 1.0000. The FED decides to devalue it by 38.2%, what would be the value of EURUSD?
  • #2
  • Jan 1, 2012 1:31pm Jan 1, 2012 1:31pm
Quoting abooz
i'm not good in maths.

Lets say EURUSD is at 1.0000. The FED decides to devalue it by 38.2%, what would be the value of EURUSD?
The FED decides to devalue what?
  • #3
  • Jan 1, 2012 1:48pm Jan 1, 2012 1:48pm
devalue the dollar!
  • #4
  • Jan 1, 2012 1:54pm Jan 1, 2012 1:54pm
Quoting abooz
devalue the dollar!
First of all, the FED would not be able to devalue the dollar by an exact amount. Secondly, the euro is also not static and will devalue or appreciate independently.

However, if we take your example and say the FED can actually devalue the dollar by 38.2%, while the euro stays completely static in terms of value, then the calculation is simple for the EUR/USD: 1 / (1-38.2%) = 1.6181. simple maths.
  • #5
  • Jan 1, 2012 2:13pm Jan 1, 2012 2:13pm
Quoting abooz

38.2%
Any reason why you're using a Fibonacci ratio or was it just coincidence?
  • #6
  • Jan 1, 2012 2:31pm Jan 1, 2012 2:31pm
what i obtained from Bernanke's speech:

'Although a policy of intervening to affect the exchange value of the dollar is nowhere on the horizon today, it's worth noting that there have been times when exchange rate policy has been an effective weapon against deflation. A striking example from U.S. history is Franklin Roosevelt's 40 percent devaluation of the dollar against gold in 1933-34, enforced by a program of gold purchases and domestic money creation. The devaluation and the rapid increase in money supply it permitted ended the U.S. deflation remarkably quickly. Indeed, consumer price inflation in the United States, year on year, went from -10.3 percent in 1932 to -5.1 percent in 1933 to 3.4 percent in 1934. The economy grew strongly, and by the way, 1934 was one of the best years of the century for the stock market. If nothing else, the episode illustrates that monetary actions can have powerful effects on the economy, even when the nominal interest rate is at or near zero, as was the case at the time of Roosevelt's devaluation'



Nearest fibo to 40% is 38.2%.
  • #7
  • Jan 1, 2012 2:40pm Jan 1, 2012 2:40pm
Well good luck with that anyway!

....by the way, is that a crack pipe you're holding?

  • #8
  • Jan 1, 2012 2:54pm Jan 1, 2012 2:54pm
thats gandalf the white from lord of the rings
  • #9
  • Jan 1, 2012 2:57pm Jan 1, 2012 2:57pm
Quoting abooz

thats gandalf the white from lord of the rings
I didn't mean him, I meant you!
  • #10
  • Jan 1, 2012 3:05pm Jan 1, 2012 3:05pm
lol, i hope i am ...
  • #11
  • Jan 1, 2012 3:12pm Jan 1, 2012 3:12pm
Quoting abooz

lol, i hope i am ...
What you going to do then, buy some Eur/Usd and hope Ben helps you out?
  • #12
  • Jan 1, 2012 3:20pm Jan 1, 2012 3:20pm
at the moment, i'm waiting for eurusd to reach 1.0000, specifically to 0.9592. then i'll wait for uncle ben to increase it to 1.70. i'm now high on crack, lol
  • #13
  • Jan 2, 2012 2:58am Jan 2, 2012 2:58am
Quoting abooz

at the moment, i'm waiting for eurusd to reach 1.0000, specifically to 0.9592. then i'll wait for uncle ben to increase it to 1.70. i'm now high on crack, lol
You better give some to the ECB, I'm not sure they'd be too happy about that plan!
  • #14
  • Jan 10, 2012 5:56pm Jan 10, 2012 5:56pm
rise up, falling...rise up, falling... rise up, falling....rise up, falling.... then u will learn.. Ben is only 1 person... do not forget about oil, gold, quake, flood, this company buying this company, shareholders quit and etc etc... it all can effected the market movement even Mr Ben cannot predicted it... must read more if u ask me...
  • #15
  • Last Post: Jan 10, 2012 6:35pm Jan 10, 2012 6:35pm
You forgot Greece, Spain, Italy, Ireland, Hungary, Portugal and .... and ....
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