With the steady decline of the EU Buck over these past few months because of the doubt of whether or not the Euro, or indeed the EU Buck zone will survive in its present state has investors worried to say the least, whether they are investing for their future into a QROPS, SIPP or similar…
With the UK refusing to be a part of any new treaty and utilizing its veto a few weeks back was seen by many initially, as terrible, although the British electorate certainly supported his actions and put the United Kingdom back on the map as having its own agenda, pride and strength to say no when it wasn’t in Britain’s best interest. Since then other countries have stood up and have also decided to decline.
The very idea of member contries reporting to Brussels (or Germany and France) for their economic and fiscal policies is too much for them to agree to. A sad fact remains though; it’s potentially the only viable solution for the EU Dollar and the EU Buck zone to be successful.
What comes next is anyone’s guess at the moment, will the ECB lower interest rates? Will they print more money? These are hot subjects of debate…
The industrial stories is so varied from day to day that it’s complicated to tell what the subsequent catalyst will be for either a reversal of fortunes or the continual slide for the EU Dollar.
For the technical investors and traders out there the Euro Buck/Usd is getting near some major support at the 1.26 area. This has proved to be a major area for the Euro Buck/Greenbacks in the period of May till Sep 2010 the area was tested several times in that time. Will it hold again or at least offer some temporary support for the Euro remains to be seen. However one thing is sure it is going to be tested again, so the following couple of weeks could prove very interesting times for backers.
Whether you are a sole trader or merely enthusiastic about the markets, J W Davis offers views of the markets and economic news, from both a technical and fundamental vantage point. Other articles that could be of interest: - covering pensions, investing, QROPS and QROPS Advice.
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This post was written by admin on February 21, 2012
