Thursday, January 31, 2013

Euro rally based on nothing

Whatever you might think about Euro and its recent advance we can clearly state that this optimism of Euro bulls is built on nothing. Of course, I understand that strength of any currency always depends on trust of investors who are buying that currency. That is what ECB Draghi tried to do a few times in a matter of half a year. He said that ECB will do whatever it takes to provide stability and insure growth for failing European economies. However, these are only words. ECB actions will do no good neither for economy of the region, nor for its’ currency: Euro. 

I mean how you can take hard earned money of those who work and give it to those who only want to celebrate. By this I mean South European countries with the mentality that they have. Principles and interest continues compiling in a geometrical progression on those loans that none of the European countries will be able to pay. Investors will eventually come to their senses and drop their long Euro positions and start selling this flawed currency. It will drop like a rock and nobody will be able to stop it. So, be careful about being long in Euro. 

If you are ready to trade Forex, futures, indexes and stocks I recommend Etoro. 

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