Why Is The Euro So Strong?

The euro is still very attractive against the pound and the U.S. dollar, despite continuing problems with European debt and bailouts or submitted to the probable loss. I have a report released today by the BBC, the expected two-thirds of European economists surveyed Greece, declared their inability to pay.
Last year, for example, an ad with the markets in absolute crisis, in fact, a lot of weakness in recent years because of the euro was the debt crisis.
This year, despite well-publicized problems in Portugal, Ireland, Greece and Spain, the euro remains a very attractive possibility for those who are buying property abroad. This is due to a number of factors:
- EFSF - The European Financial Stability Fund was designed to act as a safety net for indebted European countries. The Fund recently made permanent and has the confidence of the markets that the ECB and the euro zone members are more serious to come to the financial support of the weaker members - a review imposed on the number of members. As discussed European debt refers to an important weight in the euro last year was, but now the problem is known and appears confident that it has been restored for treatment. It is worth noting that the longer term, it is likely that the problem could be the weakness of the euro as concerns about the inability of the indebted countries to pay their debts to be shown.


- The interest rate decisions - Britain was almost certain to be a rate hike in the first quarter and the pound to the euro made strong gains as investors positioned themselves for the event. Then there was a flurry of economic data show that in all probability, not the United Kingdom was willing to have taken a walk and, as such, these positions, leading to weakness of the pound sterling. By contrast, in the euro area has been floating the prospect of a rate hike as early as next month. Apparently, the fall in unemployment in the euro area may have turned a corner and is the first to add a base rate increase in the stomach. This has exacerbated the problems of GBPEUR rate because investors have taken strong positions in the euro. The U.S. economy is growing, while still incredibly weak, and published in the amount of cheap credit to stimulate the recovery can not afford to go to raise interest rates. They are still managing the latest round of quantitative easing, and require a full impact assessment before committing to a rate hike.
- Economic Outlook - The economic outlook for the euro has improved this year with enouraging signals into production orders and the factory. Unemployment is falling and the overall picture remains despite the problems with rising PIGS. The UK is suffering from very low growth and the immediate future is not rosy. It could take months or a year until the economy is considered strong enough to be able to handle a rate increase, even if the euro already have one, is unlikely to be a big engine.
Despite the bad news for the euro to buy is a trend is good news for those € sale. The movement of this month of more than 5% in your favor to present a great opportunity to maximize the sale of properties.
As a specialist currency broker who not only offer corporate and commercial rates for individuals and businesses of all sizes, we offer expertise and advise on market activities, which seeks to maximize your currency exchange.
For a discussion objective, informative, and potentially profit from current trends, why not complete the list of contacts, make us and may be an experienced Forex trader, capable of covering all inputs and outputs, which will discuss safe and profitable way to explain the transfer of funds abroad.