Saturday, December 9, 2017

Three reasons to worry about the fate of the euro

Three reasons to worry about the fate of the euro

Persistent
the downward trend of the euro, which continues
for the past five weeks, continues.
Analysts do not see a single driver
to its upward movement (except
rare technical correction). FROM
Technically, the pair is strongly
resold, and technical analysts
beat all the bells, experiencing strong
anxiety.


what
is it puts pressure on the euro? Why is the situation
You can not see gaps?


there is
Three main pressure to a single factor
currency.


At first,
the European economy is going through
serious decline
. macroeconomic
performance clearly hinted at
that of Damocles hanging over the euro area
Sword double-dip recession. high
unemployment (11.5%, and the south - above 20%),
low volume industrial production,
critically low consumer
inflation (which is likely to be
decline further), the negative dynamics
producer prices, microscopic
GDP growth (and that is mainly due to
Germany) - and even sanctions war
with Russia ... Any one of these factors
It would be enough for a serious blow by
stomach, and Europe got them all at once.
Most likely, the ECB will announce the program in the fall
to repurchase the asset (TLTRO), that
even more will drag the single currency down.


Secondly,
European assets in recent months,
smoothly into the ocean
, in government bonds
USA. Their yield is kept low
level, and all of this gives additional
the strengthening of the dollar.


AND,
in fact, the third reason - actually,
a strong dollar.
The US currency
now rosy and healthy, after the crisis
2008 - 09 years, she recovered completely,
index hit historic records,
the economy is growing by leaps and bounds. By
compared to the anemic and frail economies
Eurozone, US look like the Statue of Liberty
close to the Manneken Pis.


All
these three factors in the near future in any way
will not give rise to the usual euro
values, which means that Europe has a long
the struggle for economic health.


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