To be honest, I am not a bit surprised when hearing that credit rating agency-Standard & Poor’s (S & P) has put 15 countries using the Euro currency on a negative credit watch. Moreover, I think the decision should have been made earlier! Why? Just look at the long battle of EU crisis, the ineffective responses from European officials. So I don’t doubt why the euro has dropped 10% in the Forex market over the last 3 months; I am just wondering when Forex traders will recollect their confidence in the EU currency!
Europe’s debt crisis has dragged on for nearly two years and has only been intensified by the day as leaders fail, time and time again, to deliver a credible solution. So disappointing, isn’t it?! For what’s worse, the crisis deteriorated recently as the downgraded credit rating of Greece. On Monday, the S & P even announced that it would decide within 90 days whether to cut the AAA credit rating for the bailout agency by one or two notches after determining whether the credit standing of any of the individual countries should be trimmed.
The truth is, if only the Europe did not wipe through the debt crisis, the euro were to collapse; it may possibly come with bank failure, a deeper European crisis and even overall wealth losses…god, such terrifying, I can hardly imagine what a catastrophe it will be for Euros! Well on the contrary, if only it happened, it is good news for the Forex traders to welcome a new trend.
However, as serious as the warning S&P gives to EU, it is more like pressure for the European countries. It’s high time for European countries to temporarily put off their individual interest; no matter it is France or Germany. Neither can benefit a lot from a collapsed European union.
I don’t predict. I use my rational. This long lasting battle is about to end. No one knows exactly when though. Keep a close watch for the latest Forex news released, Forex traders. A bearish EUR/USD may not take the trend so soon. What do you guys think?
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