The Euro seems to be facing a setback in its global value in the foreign exchange markets. The European Union currency has faced some severe setbacks ever since the beginning of this year in light of the European Union crisis. The near exit of Greece from the European Union caused a huge stir in the continents markets. The retention did not spell out any better situations for the EU. In light of Greece staying put in the Union, it has created a different set of problems for the European Central Bank.


The sinking Euro


With the retention of Greece, the ECB along with various other financial institutions and nations have set a bailout package for the country provided they accept certain austerity measures. The bailout packages have created a slump in the economy for the past year. In addition to the crisis faced earlier this year, the Volkswagen emission scandal was another contributor to the further drop in the Euro value this year. The Euro has fallen to an all-year low this week against a rising dollar. However, the drop in the value of the Euro has had some peculiar beneficial effects. The ECB has announced more monetary policies to stimulate the economy, the announcement of the slashing of interest rates and buying of bonds has in a way boosted public confidence in European markets. This has resulted in a slight boost of the markets and the currency, however, this will be the long haul with a lot of effort and time required.


The resilient dollar


In contrast to the Euro, the dollar has been rising, and has risen to an all year high, which boosted investor confidence and has also engendered a surge in the employment rate of the country. This positive curve that the nation seems to be taking has also encouraged the Federal Reserve to loosen the grip on the monetary policy and raise interest rates for the first time in nearly a decade. The Euro fell by 0.2 percent.


Even though Europe may be going through its minor crisis with stimulus packages, the general global economy seems to be shaping up well. Crude oil prices seemed to climb by 45 cents on the barrel. Experts say that the price of oil should be relatively stable around this mark as we go into the new-year. The general consensus amongst most financial experts however, is that the Euro will fall further in 2016 despite Crude oil prices and stimulus packages.


Financial Buzz