cmyk Trends
Independent Thinking on the Printing Industry
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  • Jochen Meissner

Currency is King

1/6/2015

 
2015 promises to be another year of surprises, hopefully bringing more good than bad ones.  While I leave the forecasting to the professional tea leaf readers, it is always worth taking a look at currencies this time of year. 

The chart below shows the development of the Japanese Yen (green) and the Euro (blue), both vs the US-$ over the last 10 years.
Picture
The black line in the lower box depicts the Euro-Yen relationship.
Obviously, the dollar has appreciated against both currencies over the last half year, but for the last two years the Yen valuation has been completely reversed and a Euro today buys 145 Yen vs about 100 Yen two years ago.  That won't make life any easier for European manufacturers competing with Japanese companies, never mind US digital or offset equipment makers.
However, with the US-$ being the strongest since DRUPA 2012 and the US economy having an overall improved outlook, US printers may well look at ending their capex hiatus and modernize their plants again. 
David Stamp link
1/6/2015 06:28:24 am

Good overview as always!

The economic outlook for the leading continental European countries (Europe excluding the UK) is not good in 2015. Even German small and medium size companies have been hard hit by the global recession and since 2012 this has been a growing issue as all their export markets have been badly effected.

France and Italy are weak and Greece (a much smaller economy) faces big issues still.

And the EU is only now considering quantitive easing - 6 years after the U.S. and the UK applied this.

More Europe's economic weakness than just American market growth...

David Stamp link
1/7/2015 06:29:54 am

Just 24 hours after my post and more evidence of what I have suggested. Today the European Union (EU) has announced 'negative inflation' otherwise k own as 'deflation'. They should have acted long ago...

Richard Sutis
1/7/2015 07:15:14 am

Currency and Energy costs affect Packaging,but not to the extent of in country demand and logistics.Thus the overall economies of most nations drive demand to each country's printers who satisfy the indigenous manufacturers within their region,even if they export or not.Changing trans ocean sourcing is a really big step driven by the product manufacturers costs which are much more than the packaging.


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