1. This site uses cookies. By continuing to use this site, you are agreeing to our use of cookies. Learn More.

Daily Fundamental Analysis 8/06/2010 FXCBS

Discussion in 'Major Currency Crosses' started by fxcbsar, Jun 8, 2010.

  1. fxcbsar

    fxcbsar New Member

    Joined:
    Dec 4, 2009
    Messages:
    267
    Likes Received:
    0
    Tuesday June 8 , 2010

    Daily Fundamental Analysis

    Euro draw existential crisis, British economists are likely not to hold the ECU in its current form for more than five years, since they may withdraw from more than one country - including Germany - because of the debt crisis that swept a number of Member States of the euro group. According to the preliminary findings of a survey conducted by the weekly Sunday Telegraph, including 25 of the most prominent British experts12 of them considered that the Euro group, which includes 16 countries, will not continue the current composition, in the light of the likelihood of the withdrawal of members, including under the weight of the debt crisis and budgets. The economic researcher Andrew pure said that the chances of the continuation of the euro group today close to zero, he almost certain that Greece - which is suffering under debts of nearly 400 billion dollars and a budget deficit of approximately 13% of its total output - will stage the inability to pay its debts. Markets have witnessed a global shake-up on Wednesday in a selloff for the second day by fears that the growing debt crisis in Europe could threaten the global economic recovery. Euro fell against the U.S. dollar to the level of 1.3143 which is the lowest level since April 2009 due to fears of traders that the debt crisis could spread to other European countries facing challenges such as Portugal, Spain, Italy and Ireland.

    Earlier, the German government adopted a more austerity plan in the history of the country to provide about a hundred billion dollars until 2014 to allow for reducing the level of public debt in anticipation of a similar crisis to the crisis of Greece, which spread to other countries in Europe, the plan provides for reduction of public spending in ascending format, four-fifth billion Euros (96 billion dollars) during the next four years and include the reduction of welfare benefits, and imposition of new taxes, especially on the nuclear power industry, and the write-off of about ten thousand a government job. This means that high rates of unemployment in Germany, which will affect negatively on the euro. The budget deficit last year in Germany was 3.1% of GDP slightly more than the maximum permitted by the regulations of the European Union of 3%.It is expected to exceed the budget deficit in Europe's biggest economy 5% next year to come back drop to the level of 3%, according to government hopes Chancellor Angela Merkel.

    It seems that the old continent is facing various financial problems here and there incalculable, while all eyes went to Greece we found Spain, Ireland, Portugal and Italy and now we hear that the deficit in the budget of Germany might expand next year, It seems that European unity on the way out, too, and especially as the spirit of cooperation between member states is not strong , because of the different races and nationalities, unlike the United States and cause of the disappearance of the spirit of cooperation between the member European Union , we think that Germany will be the first to leave the EU and followed by France to maintain its economy, It seems that the dollar will remain master of the world for centuries and will sit on the throne of the world economy for ease of exit from the crisis that befalls it . The U.S. dollar is a Hollywood movie hero.

    Senior Analyst / Ali Hasan /FXCBS

    Newsletter

    Forex ECN Broker , Currency Online Trading , Low Spread , Free Trading Software
     
Loading...

Share This Page