Since the onset of the Global
Financial Crisis, which took hold in earnest in 2008, the Euro has never been
so low against its main Foreign Exchange counterpart, the US dollar, than it
has been this year. Earlier in the year it enjoyed something of a reprieve on
its way past the 1.10 mark, and this lasted for most of 2015. Indeed, in the
middle of the year it almost looked as if it was reaching out for 1.20, only to
be sent sharply below 1.10, moving down with a vengeance after the last FOMC
statement, and accelerated by the news that Non-Farm Payrolls reached a record
for the year last Friday.
Now the chatter is, once again,
around the prospects of it hitting parity with the Greenback, which some
commentators predict will happen early next year, perhaps after the US Federal
Reserve starts to lift interest rates.
The new safe-haven needs turmoil to support it
Whatever strength the Euro
had this year was as a direct result of the fact that it has now assumed the
status of a global safe-haven currency, to be fled to in times of crisis, as
was formally the case with the dollar. Ironically for most of 2015, the
overarching concern of hedge funds and all those who are concerned about their
currency holdings, and who seek safety, was the situation in Greece . Ironic,
because Greece
is a member of both the European Union and of the Euro zone, which is the
jurisdiction of the Euro itself.
Now Greece has been
sorted, or at least so it appears. Possible issues that can just about be
discerned on the economic radar screens include China (rumbling away amid
concerns about the accuracy of economic data coming therefrom), and the
undertaking by the British Prime Minister, David Cameron, that his government
will hold a referendum on EU membership.
Needless to say, there could
be other issues that, when they come, will be perceived as having appeared out
of a clear blue sky. All this keeps things interesting, of course, but as far
as the OmiCronFX Mandelbrot system is concerned, it also maintains the
volatility in currency pairs that allows it to return Forex trading profits.
No comments:
Post a Comment