Sterling Digest, April 19 2012: the euro is dying

Bureaucracy. Democracy

Bureaucracy kills the euro

The streams are buzzing with $EURGBP talk as the pair finally breaks out to the downside for new yearly lows. This pair remained rangebound for 4 months as the ECB, IMF, and EU kept the market in great suspense on what it was going to do about Greece and the other PIIGS. Unlike other QE-wielding central banks like the BoE and the $FED, the ECB took its time in dealing with the financial crisis within its borders. As larger economies like Spain and France start to teeter, the long term euro implications of early inaction could be devastating and sterling stands to benefit.

Image credit



The information in this blog post represents my own opinions and does not contain a recommendation for any particular security or investment. I or my affiliates may hold positions or other interests in securities mentioned in the Blog, please see my Disclaimer page for my full disclaimer.

comments powered by Disqus
Faith Might FX Blog