More on the status of the Euro

I’ve been following the rise and fall of the Euro.  Though I haven’t particularly been researching and comparing it with the USD, I just read an article about the Euro’s decline in relation to the Yen.  This concept is interesting to me.  China is becoming increasingly more powerful, especially in the financial world.  While I’m not sure whether or not to be afraid of this fact (I don’t necessarily think that China will “take over the world”, but it is sort of unsettling to be reminded that the U.S. is no longer the leading financial force.), it does make me consider just how far the USD has fallen.  I have been thinking of the Euro as such a powerful currency (because of the strength it’s had over the USD for the past half decade or so), but if the Euro is faltering, that’s not a good sign.  What does this mean for the fate of the USD?

I read this in the article: “Europe is heading towards a recession,” said Robert Rennie, chief currency strategist in Sydney at Westpac Banking Corp., Australia’s second-largest lender. “You continue to use opportunities to sell the euro into strength because it’s a hope-based rally. Once that hope starts to evaporate, the euro will start to fall again.”  Should we be afraid that China is “taking over”?

Article I read:

http://www.bloomberg.com/news/2011-09-28/euro-retreats-against-yen-dollar-amid-concern-at-europe-economic-slowdown.html

Article info:

Euro Drops Against Yen Amid Slowdown Concern

By Masaki Kondo and Monami Yui