The ongoing debt crisis in the euro area poses a threat to the future of the euro exchange rate suggests think tank.
The euro exchange rate is lower against the majority of major currencies it pairs with.
News out this morning is that the risk is roughly one in seven that Europe's ongoing debt crisis will push member nations to abandon the shared currency.
This raises the spectre of the "effective end of the euro area," and by extension, the euro exchange rate.
This viewpoint comes courtesy of the Economist Intelligence Unit.
Attempts to restore investors' confidence in debt-laden nations' ability to honour their commitments could see the weaker eurozone members grow ever wearier of the demands placed on them, according to a new report from the research body.
Looking at morning foreign exchange rate action we see that doubts are being raised that the euro is able to add to its gains ahead of Thursday’s ECB rate decision, with resistance up around $1.4250 proving incredibly stubborn. European retail sales and US non-manufacturing industrial data will draw some focus today but again no major movements are expected ahead of this week’s more significant central bank announcements.
It will be interesting to see whether the US dollar can capitalise on increasingly positive economic data over the coming weeks, or whether its ongoing loose monetary policy will continue to overshadow its growth potential.
Source: www.euro-exchangerate.com
The euro exchange rate is lower against the majority of major currencies it pairs with.
News out this morning is that the risk is roughly one in seven that Europe's ongoing debt crisis will push member nations to abandon the shared currency.
This raises the spectre of the "effective end of the euro area," and by extension, the euro exchange rate.
This viewpoint comes courtesy of the Economist Intelligence Unit.
Attempts to restore investors' confidence in debt-laden nations' ability to honour their commitments could see the weaker eurozone members grow ever wearier of the demands placed on them, according to a new report from the research body.
Looking at morning foreign exchange rate action we see that doubts are being raised that the euro is able to add to its gains ahead of Thursday’s ECB rate decision, with resistance up around $1.4250 proving incredibly stubborn. European retail sales and US non-manufacturing industrial data will draw some focus today but again no major movements are expected ahead of this week’s more significant central bank announcements.
It will be interesting to see whether the US dollar can capitalise on increasingly positive economic data over the coming weeks, or whether its ongoing loose monetary policy will continue to overshadow its growth potential.
Source: www.euro-exchangerate.com
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