Concerns over Europe are back

Share news

Concerns over Europe are back. Recent parliamentary elections in Greece and presidential elections in France have opened another round of talks over the European currency’s future. Mr. Hollande unlike his predecessor shares no optimism with regard to harsh fiscal tightening, proposed by Germany, which casts doubt over the euro zone’s chances of recovery.

Asian markets were first to react to news from Europe. Nikkei index fell -2.8%, followed by Hong Kong Hang Sang -2.67% and S&P/ASX 200 -2.15% respectively.

EUR/USD Currency pair started trading with a 54 point gap at 1.3028 and went below the psychological level of 1.30 to 1.2955.

Also in the news, Wall Street Journal reports on the European debt crisis: “At the end of March, 10 of Europe’s biggest banks had parked a total of nearly $1.2 trillion of cash at central banks around the world, according to an analysis by The Wall Street Journal of bank disclosures. The total is $128 billion higher, or a 12% jump, since December and up 66% from the end of 2010”.

Given the current events, further weakening of Euro in the near term seems the most anticipated scenario.

Trade global forex with the best ECN broker of 2021*. Choose from 50+ forex markets 24/5. Open your FXOpen account now or learn more about making your money go further with FXOpen.

* FXOpen International, best ECN broker of 2021, according to the IAFT

CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. FXOpen UK: CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 60% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work, and whether you can afford to take the high risk of losing your money.
FXOpen EU: CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 81% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work, and whether you can afford to take the high risk of losing your money.