FX Trading – Ganging Up Against the Euro Gang
The euro is getting pummeled again this morning, after a pitiful performance following the better than expected US Nonfarm Payrolls report on Friday. And while the QE2 implementation is only just beginning, the QE2 hoopla is waning. Coming into focus now – again – are the Sovereign debt issues of the eurozone.
We asked on Friday if something changed, warranting this renewed concern from the markets over whether or not the eurozone can keep it together. We didn’t have an answer, and still don’t – but we have some things worth considering that will eventually give us the answer:
The potential for an improving US growth differential, relative to Europe, may be the catalyst. No doubt the attention has been stuck on the US for most of the second half of this year. Unemployment in the US has been the thorn in the side of US economic recovery efforts. Friday’s US Nonfarm Payrolls report puts the pressure on Europe – will the economic data (specifically unemployment numbers in eurozone countries) improve enough to keep the region and the euro in the market’s favor?
….read more HERE