The euro endured hard times this year as the financial crisis in the European Union made us question the very existence of the currency. Therefore, the rally it showed this summer was rather unexpected. The experts expected the rally to end soon, perhaps even this month. Does the outlook changed? Not much, though it became somewhat more bullish.
The 16-nation European currency showed the strong performance this summer, just as most traders lost any confidence in the currency. The questions, which of course sits in many minds, is: can the euro sustain its rally? Everything can happen, as the euro showed by its rally, but few economists believe that the currency will continue its rally for the long time.
The U.S. dollar was rising as the European crisis increased the demand for the safe currencies, but recently began to decline as the focus of the concerns turned to the U.S. themselves. While at the end of this week the greenback rebounded against some other major currencies, the future of the U.S. currency looks uncertain.
The outlook for the European currency is perhaps the worst since its introduction in 1999, as disparities among Eurozone members’ financial structure is likely to decline the appeal for the currency even further, since measures to bring budget deficits to the ECB’s target are likely to set several countries into a longer recession.
The U.S. dollar profited last week from a wave of uncertainty that brought investors to opt for safer bets in
The start of 2010 was rather grim for the European single currency as consumer confidence and economic acceleration decreased in the European Union, adding to the negative sentiment spread in markets but some of the bloc’s members raising budget deficits.
The U.K. currency may be experience a shift on its sentiment as speculations suggest that the current quantitative easing measures used by the nation’s central bank will be terminated, as the country starts to publish positive economic reports, suggesting that the recession may be ending in the British Isles.
After the SNB stated its position against further advances of its national currency, the Swiss Franc may be poised to decline versus main currencies, as fears of interventions are likely to shun investors from investing in the
The United Kingdom has been showing itself as one of the least resilient nations among the wealthiest countries in the world, and its weak economic data combined with a ineffective monetary policy is likely to set the sterling further down in the first semester of 2010, specially versus
The euro may extend last month’s decline versus emerging markets and commodity linked currencies as the economic recovery expected for the beginning of 2010 may rise appeal for riskier assets, damping demand for the European single currency in
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