Euro Forex Forecast
Last week there was a bond sale in every Euro Zone member state, bar Germany. I personally believe that they will soon follow suit. We have German jobless and biz climate numbers coming out this week and the market will be glued to them.
But is it acceptable to put so much focus, and hence pressure, on Germany alone? The Country was standing shoulder to shoulder with France as the problems with the PIGS pitched to its most recent crescendo, but since that rather disappointing French debt auction coupled with a few rating agency downgrade treats, France is no longer the rock it had been seen to be throughout the majority of this crisis. Put simply, guys if I was a German taxpayer, I’d be pretty peeved by now at having to constantly prop up my irresponsible siblings.
The end of the Euro will never happen, but surely if there is one thing that global and economic leaders must now recognize that there should be nothing, be it corporate or sovereign, that should be deemed to be “too big to fail”.
By comparison, most US data was optimistic and augments my upbeat feelings towards the Greenback. The data will, I suspect once again prove to be the market’s master this week, but just remember; the Euro Zone still has everything to fear, and very little to be upbeat about.