Now the holidays are over, it’s back to business for every coffee professional around the globe. Starting the new year, every company is talking about growth and hot prospects for the future. And there is no better way to learn and grow, than to know your history and learn from the market signals! That’s why 32cup looks back at the tumultuous year 2012, starting with the Exchange Market review.
THE EUR/USD MARKET
For our coffee importing business, the Foreign Exchange Market is a crucial matter. It not only influences the prices we offer our European customers, but also has a huge impact on the salaries of the farmers. Therefore, it’s essential to keep a close look on the exchange rate. This rate is a continuum, which means it keeps changing 24/7, with very few exceptions. Every day, the average of the day’s variations is calculated, so we can keep track of the macro-evolutions in the exchange rate.
As a whole, 2012 did not suffer from huge variations in the exchange rate market. On January 3rd, 2012 one euro was worth 1.3061 USD. After a small bump in January, the rate went upward towards the 1.35 mark, but never really making it there. Springtime meant a stable period for the EUR/USD market, pending between 1.30 and 1.34 for two months until May. From May 9th onwards, the value of the USD plunged beneath the 1.30 margin again, and it would stay there the entire summer. In June and August the rate floated around 1.25, while the lowest score of the year was noted on July 24th, leveling at 1.2062. The Fall of 2012 was a steady one. Halfway through September, the rate made it to 1.30 once again, but the lion part of the Autumn season was spent around the 1.29 benchmark. In December, the rate climbed over 1.30, even going a high as 1.3228 at the very end of the year.
2012 overall high: 1.3463 (24/02/2012)
2012 overall low: 1.2062 (24/07/2012)
2012 average: 1.2857