Financial markets experts believe that the demise of the euro, a currency predominant in 17 of the 27 European Union countries began during the European sovereign debt crisis of 2009 amid the global financial crisis.

Today, stream of bad news continues to emerge from Europe – that the euro’s days might be numbered with a possibility or a couple of debt hard countries like Greece may exit the Euro Zone and use their own currency in their transactions. Is the euro collapsing? The possibility of total collapse of the euro remains very remote; this is according to Werner Bonadurer a renowned professor of finance at the W.P.Carey School of Business at the Arizona State University.

taking a Europe vacation next summer may be a great idea. That is because the euro has recorded a 12 years low of $1.06 and it’s predicted that its downfall will continue for years to come. In matter of months the dollar will be worth more.The dollar and euro spot rate was 1 back in December 2002, just three years of the euro existence.

But since then the euro has become stronger due to an improvement in the Euro zone balance of trade. . Back in 2007 when the euro soar to $1.59 an all-time high, experts speculated the euro would take over as the word’s reserve currency from the dollar– but it turns that the euro dominance was to be short-lived. Since then, dollar has gained strength against the euro and the same time forcing a 24 percent downfall of the euro. The impossible has become possible as the euro’s downfall continues.

The European Union is America’s largest trading partners; most of the transactions between the two trading zones are dominated by the dollar. The euro comes in second, and that leaves any trade partner doing business with Europe very exposed. The currency’s downfall relative to the dollar and the pound can be attributed to the uncertainty about the euro’s future currently, the euro is trading on its 52 week low and experts believe the dollar and the euro may eventually break-even and trade at a 1-to-1 ratio.

Total collapse of the euro could lead to a prolonged depression in Europe and several years of recession in the world. Economists also warn that the collapse of the euro would have a worse impact on the economy of the U.Sand other economies than the Great recession. Speculation s of the collapse of the currency has forced a rush of financial assets out of the Euro zone would also trigger a hike in oil prices and cost of capital worldwide. Is the euro collapsing continues to elicit mixed reactions in European Union politics and in the global financial markets.