OctaFX | OctaFX Forex Broker
Open trading account

Forex Flash: For EMU to survive, it will take a German shape - BBH

FXstreet.com (Barcelona) - Marc Chandler, Global Head of Currency Strategy at Brown Brothers Harriman notes that in order for the EMU to survive, it will be shaped by the most powerful interest, which is Germany.

He comments that as the US pivots towards Asia and the UK threatens to leave the EU, the centuries old balance of power politics is giving way to a German led block. He writes, “Its ideology of ordo-liberalism advocates a strong state and strong markets, as opposed to the Anglo-American neo-liberalism, which allows for a smaller role for the state.” Chandler feels that there is a sense in some of the local press that Germany is tired of aid and it is not coincidental that the Bundesbank just made public a report that has been available to several weeks showing that, due to home ownership rates, many European, include Spaniards on average, are richer than Germans.

He continues to note that of course, political sensibilities are running high as the national election draws nearer (in September), and the first German party to officially advocate leaving EMU, has been launched. He adds, “At the same time, the cost to Germany has thus far been quite limited and what de minimis funds it has had to raise has been more than offset by the lowering government's lowering borrowing costs and interest on its loans.”

Forex Flash: Post-Cyprus: gradual Euro weakness remains the central case - Nomura

Nomura strategist Jens Nordvig notes that news from Cyprus this weekend was substantially better than the initial bailout news from the last weekend.
Read more Previous

Forex Flash: Fears that Cypriot package could spark capital flight from Eurozone - BTMU

Lee Hardman, FX analyst at the Bank of Tokyo Mitsubishi UFJ notes that the euro has remained under downward pressure following the announcement of the financial support package agreement for Cyprus with investors nervous that it could trigger capital flight from the euro-zone in the near-term.
Read more Next
Start livechat