It’s been over a week since the Italian election. The French President Emmanuel Macron and German Chancellor Angela Merkel, were planning for more integration. They want to continue with a banking union to protect members in case of another financial crisis.
The euro is the second most traded currency in the world and a key part of global capital flows.
But will it survive? Can the eurozone hold it together? And what does it mean for your investments here in Australia?
If you think the euro doesn’t matter to you, find out how the connections between economies shape the return you receive on your stocks, your bank account and the value of the Aussie dollar…
There are two very important events occurring this week. However, you’d be forgiven for not knowing they were happening. For currency traders, this news means the US dollar should remain weak, keeping the euro higher for the rest of the year.
The sooner you embrace the cashless society, the sooner they can implement negative interest rates and stimulate inflation.
Funny money is getting funnier and funnier. Our challenge is to figure out who the butt of the joke is.
Italy is not doing well economically. It has been affected by a nationwide banking crisis and Europe’s refugee crisis. Its debt to GDP has climbed to a whopping 131.8%
even though Spain’s economy grew last year, it has the second largest deficit to GDP ratio in the EU. And in 2015, Spain failed to fulfil its deficit goals.
Italy’s stock market has been a rollercoaster ride this year. Italian banks have lost more than 50% of their market capitalisation.
The Brexit will kill any of the EU recovery signs we saw during the last few months. And it may even spark a new economic crisis.
Last week, the Dow fell 1%. The media blamed nervousness over the upcoming referendum in Britain (Brexit) on whether to leave or stay in the European Union (EU).
Being told what to do and how to operate by unelected and faceless Eurocrats would be enough for me to vote for a Brexit.
Whether the euro is most at risk of a Soros attack. Some analysts think that if the UK leaves the EU, it could put the entire European project at risk.
Overnight, European Central Bank (ECB) President Mario Draghi sent shockwaves through global markets. It’s not so much what the ECB did, but what it didn’t do that was the problem.
How will central banks stop the recession when they’ve used up their dry powder fighting the currency wars?
As we kick off another week here in Australia, Europe winds its down under the threat of another terrorist attack. Brussels is apparently in a state of lockdown.
The Australian dollar is trading at six year lows against the greenback this morning. It fell to $0.691 at 9:30am AEST, down from $0.698 on Friday.