How low can euro exchange traded funds (ETFs) go? No one knows just yet, because they’re still falling. But it turns out that there’s an upside to the euro’s new four-year lows against the U.S. dollar.
The euro is now hovering at around $1.1951 after slipping as low as $1.877 in trading today. Annalynn Chensky for CNN Money reports that Europe’s shared currency closed below $1.20 for the first time in four years on Friday, after bleak economic statements out of Hungary and disappointing economic reports in the United States stoked fears about a global recovery. [More Trouble Ahead for the Euro?]
Matt Phillips for The Wall Street Journal reports that no one can forget how the worries about Europe’s debt situation have crushed it in recent weeks; it’s down about 17% against the dollar so far this year. [ETFs to Watch in a European Banking Crisis.]
While the cheaper euro isn’t great news, there’s a silver lining: eurozone exports are now cheaper for foreign buyers, spurring German manufacturing orders, which spiked 2.8% in April. The weak euro also seems to have those who can afford it talking about taking that long-delayed European vacation. Tourism dollars are something Europe could probably use right about now.