Posts Tagged: European sovereign debt

The European crisis continues to affect the entire world, especially as the disputes between France and Germany do not seem to get to an end. The two countries have different perspectives upon the way in which the sovereign debt crisis in Europe should be solved and it is likely that we are not to make any mistake by saying that the financial crisis and the decrease of the Euro is not to get to an end unless the two countries find a common solution.

The problem these countries need to solve is that of whether they should share debts amongst the Eurozone states or to simply impose austerity measures upon the countries which are already faced with financial issues. The fact is that, unless they find a solution to this problem, the Euro will continue to remain in danger. The Euro has had a difficult week due to these events and it continues to trade influenced by Read more »

The concerns related to the sovereign debt crisis in Europe continue to have a very high level, causing the market sentiment to remain negative. This has a very powerful impact upon the trading market, as safe-haven currencies are the only ones to grow on risk aversion. Meanwhile, all the higher yielding currencies are falling.

This is actually the case of the Canadian Dollar, which fell today against some of its major counterparts, although the country’s fundamentals were not all bad. This decline has been caused by the risk aversion which finds its roots in the fall of the bonds in Europe. The borrowing costs of French bonds declined today, reaching a new record low, while the yield on the Spanish securities grew a lot at an auction. However, the Canadian fundamentals are not all bad. The manufacturing field grew by 2.6 percent, reaching the level of $49.2 billion during the month of September. This comes after the Read more »

The previous two weeks brought almost only losses for the European currency due to the fact that the sovereign debt crisis continued and became more and more serious as the European leaders did not manage to agree upon a solution for this problem. As the European lawmakers decided to provide an additional financial aid for Greece, to expand the bailout fund for the Eurozone and to give the permission of using these funds in order to buy bonds from the indebted nations, the concerns about the Eurozone started to fade away. This has helped the Euro regain some of the lost territory.

The European Union leaders stated: “Since the beginning of the sovereign debt crisis, important measures have been taken to stabilize the euro area, reform the rules and develop new stabilization tools. The recovery in the euro area is well on track and the euro is based on sound economic fundamentals. But the challenges at hand Read more »

As the European leaders have finally managed to find a solution for the situation in Greece, it seems that the European currency finally managed to recover and start scoring gains again against its most important counterparts. The European Union leaders met in order to discuss once more the situation of Greece and it seems that they have finally succeeded in finding a solution. They have decided upon increasing the size of the rescue fund and upon accepting a temporary default level set upon Greece as this is the only solution in order to prevent the debt crisis of expanding towards other countries in the region.

The most difficult part of this process has been that of accepting the label “default” for Greece, but the European Union’s leaders have finally agreed upon the fact that a short period in which this label is going to be used for one of the European Union’s countries is better than allowing Read more »