The euro is almost out of strength
26.01.2015
First, the ECB, and now Syriza in Greece – the Eurocurrency almost daily updates multi-year lows, which was suggested for a long time, but is still just as scary.
Another local minimum of the euro/dollar tested early on Monday morning, as soon as the news of the events in Greece came out. Elections have long been daunting with prospects, but the reality that is opening now, perhaps, is simply destructive - in all senses.
Syriza party, which is now confidently winning the Greek general elections - a party of the young and strong, bold and self-confident. They do not want to save money and will not pay old debts. They want to live in the here and now, to stop the "brain drain" abroad and somehow resigned to the market of unemployment and economic chaos in the economy. By the way, the Greek economic system began to heal (in macroeconomic indicators) only in 2014. And then there is Syriza and their statements.
What is fraught with this "Greek Revolution"? The fact that the "left" in Spain, Italy, Portugal, Ireland immediately "raise their heads" and begin stirring the water with slogans such as "say no to creditors", completely forgetting about what position they were in before the country's fiscal stabilization. I agree that the methods that were used to treat the Greek economy were not the most effective and reasonable. But they worked. And now it is unclear how the course can go for a country where there are no natural resources, and tourism becomes prohibitively expensive due to the currency jumps.
The victory of Syriza directly threatens the integrity of the borders of the euro zone - but here we should wait for the comments of the politicians of the Old World. Let them share their thoughts about this issue, which is still very much "thin" in places.
In the meantime, the euro/dollar remains in a weak position and continues to fall. Is parity closer than previously thought?
RoboForex Analytical Department
Another local minimum of the euro/dollar tested early on Monday morning, as soon as the news of the events in Greece came out. Elections have long been daunting with prospects, but the reality that is opening now, perhaps, is simply destructive - in all senses.
Syriza party, which is now confidently winning the Greek general elections - a party of the young and strong, bold and self-confident. They do not want to save money and will not pay old debts. They want to live in the here and now, to stop the "brain drain" abroad and somehow resigned to the market of unemployment and economic chaos in the economy. By the way, the Greek economic system began to heal (in macroeconomic indicators) only in 2014. And then there is Syriza and their statements.
What is fraught with this "Greek Revolution"? The fact that the "left" in Spain, Italy, Portugal, Ireland immediately "raise their heads" and begin stirring the water with slogans such as "say no to creditors", completely forgetting about what position they were in before the country's fiscal stabilization. I agree that the methods that were used to treat the Greek economy were not the most effective and reasonable. But they worked. And now it is unclear how the course can go for a country where there are no natural resources, and tourism becomes prohibitively expensive due to the currency jumps.
The victory of Syriza directly threatens the integrity of the borders of the euro zone - but here we should wait for the comments of the politicians of the Old World. Let them share their thoughts about this issue, which is still very much "thin" in places.
In the meantime, the euro/dollar remains in a weak position and continues to fall. Is parity closer than previously thought?
RoboForex Analytical Department
Attention!
Forecasts presented in this section only reflect the author’s private opinion and should not be considered as guidance for trading. RoboForex bears no responsibility for trading results based on trading recommendations described in these analytical reviews.