With the problems in the Euro zone shaping global markets and the mention of an exit strategy on the cards many are asking what it will take to save the Euro zone. Today Euro-Dollar rates have reached a 5 month low after Greek uncertainty continues to dominate headlines across the globe, but is it all bad?
Yesterday GDP figures were released for the Euro zone and the continent narrowly escaped recession – With predictions going at -0.03% GDP breaking even at zero was a more than welcome compromise. Whilst Germany – the biggest economy in the EU – is largely to thank it shows that are some positives to remain hopeful for. Likewise Euro-NZD rates are the trading at the highest point of 2012 and whilst not the most sought after currency pair it nonetheless demonstrates that confidence has not been lost across the board.
Over the last fortnight there had been huge concerns as to how Merkel and President-Elect Francois Hollande could work together on a long-term solution to the EU problem. Merkel is a long term advocate of the Single Currency and adamant in the potential of austerity measures to balance the books. Hollande seems to have refined his position in their first face to face talks earlier this week and whilst sodden in rain and late for the meeting his overall intent to save Europe became clear.
All eyes will now mostly likely lead towards the G8 summit on Friday and the next round of elections in Greece on June. If you are buying or selling a position on the Euro make sure you speak to your currency broker or email me at email@example.com about any potential risks emerging on the horizon that could effect your currency transfer.