Sunday, October 7, 2012

The Euro-Dollar, Pressured By The Latest News On Debt


The euro-dollar has been under pressure from important news of a fundamental nature. When trying to analyze the intersection EURUSD, we raided several doubts. We asked ourselves why he endured the level of real threat Monday when the fall of some of the largest economies in the European Union. Another important issue in this context dealt with the levels in the EURUSD will move in the near future with the sovereign debt pressure. Nor We forgot about the impact on the dollar can have the continued rise of sovereign debt in the United States. And above all, one of our biggest questions is who will benefit from the weakening of the euro and the dollar. Undoubtedly, the EURUSD has been keeping those levels in part by the help of China, which was launched to invest in our assets. Lately Europe is weakening rapidly and is not able to create all the jobs you need. The lack of productivity and growth hampers the economy, and the lack of incentives is practically burying a young generation that in many European countries do not enjoy the job you need. The point is that these purchases coming from Asia, along with the weak dollar today, have slowed the risk on the euro and the dollar respectively. This means that after the rating downgrade of Portugal, Ireland and doubts about Italy, the euro-dollar exchange rate has not been seen much downward pressure. However, the EURUSD is being conditioned by uncertainty. There are many big issues on the table. The consequences that may have stress tests are great, and the fear is installed on all investors in the Old Continent, warily watching the current state of public finances in most economies. Macro data that we know, along with the latest news we get, will shape the evolution of the euro-dollar cross. However, the important thing is to see that today the pressures come from both sides, and they weaken the euro and the dollar. Therefore, we must be vigilant and keep track of the evolution of the Swiss franc, which may end up collecting divestments in these two currencies.

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