Forex Trading – Greece, the euro and the European Union

Forex trading is very volatile as of late because of the debt crisis currently underway in Greece. The fear is that the debt crisis in Greece spread to other highly indebted countries in the European Union (EU) as Spain, Portugal and Italy. As a result of what has happened, the euro currency has fallen almost 11% against the U.S. dollar. In considering this situation, we must ask ourselves the following questions: The sell-off infact and the recent strengthening of the euro against the U.S. dollar due to the solid foundation in the United States or the weakness of the euro? The reason they are important questions because the answer to the second impact more because we are the first response.

I would say that the U.S. is the profit in dollars is only now due to the weakness of the euro and the weakness of the euro only. The U.S. economy has only consumer spending steam, because the Fed has left rates collectionto near 0% for some time. What happens if the Fed is forced to raise interest rates? If the U.S. economy is able to be that kind of head-wind to resist? The answer is probably no. It is also important to note that consumers have more rights issues, because they walk from their mortgage payments, credit cards and car payments to keep just to name a few. This leaves the consumer with additional income that would otherwise not have and so you spend more moneyThings like eating out, shopping for clothes, and buy the new Apple i-pad. Here we go with consumers Punch-Drunk again. It 'was the last sustained boom inflated and Federal Reserve will not be sustainable this time. Inflation and defaults are the only two options for the U.S. dollar in the coming years, and these two things can only mean disaster for the greenback.

Forex Trading

When trading Forex, of course, our goal is to earn money. There are no prejudices against anything.We just want to benefit from our foresight. So the answer to the second question is that the euro has been sold and is made in a plane at some point. Probably around 1.2300 to 2400. Finally, do you think Germany is the third largest economy in the world, its currency is not? The answer is "probably not." And that's exactly why not jump, the possibility of a further € and printing bailout Greece. The euro is a sound currency because of what is happening in Greece.Investors around the world will know that there is security in the euro to take to maintain if they get into trouble a short-term loss for long-term health. Thus, the economy taking a beating, but their money will be better for this. The situation in the U.S. of A is exactly the opposite. Here we print money to avoid short-term problems that ultimately only exacerbate long-term health of our economy and our currency.

Forex Trading – Greece, the euro and the European Union
Withall that said, we are approaching a point where the euro is trading in foreign currency is a huge deal that you can take advantage of you in not only for the reasons mentioned above, but it needs only the psychology of market research. Professionals are always buying the market in free fall as the average person has to catch the wind of the crisis and is moving from road to short that has already happened to go. This model has many, many times done, andcontinue to repeat itself until the limbic system plays a role in human physiology.
Forex Trading – Greece, the euro and the European Union