Forex Traders Saw The Euro Continue To Struggle
This week, Forex Traders Saw The Euro Continue To Struggle as it hovered above a nine-month low. The European currency continued to face pressure from the US dollar, Japanese yen and other currency pairs at forex trading markets such as AVAFX. The continued pressure comes as investors await further details on a rescue package for Greece, and its fiscal debt repayment plans.
The trouble that Greece has faced recently regarding its budget deficits has seen huge dents made to the value of the euro, with the French Banking Chief suggesting that the collapse of the single European currency is “inevitable.” This has prompted forex traders and investors to opt for safer, more predictable currency pairs to trade, as opposed to euro pairs.
There are seemingly two main reasons why the euro is suffering, in spite of the reassurances made by the EU. Firstly, assistance to Greece will require the implementation of large fiscal adjustments during the next few years, which, in turn will create much weaker economical growth within Europe. Secondly, investor’s faith in Greece’s ability not to default on its fiscal recovery agreement has been reinforced by the EU’s pledge to bail-out Greece in a worst case scenario. This would mean that core Eurozone countries such as France and Germany would be forced to use public money to implement the rescue plan for Greece, further pressuring the EU and the euro.
The trend of forex traders opting for safer options has continued the euro’s woes, seeing it lag behind most other currency pairs. If you want the chance to speculate on the future of the euro you can do so by opening a new forex trading account with AVAFX. Visit www.avafx.com to open a new forex trading account at one of the most popular and trusted forex markets found anywhere online plus receive up to $1,200 when you first fund your new AVAFX account.
