Ashes to Ashes for EURUSD value, or are it’s Golden Years yet to come?

As 2015 heads into the middle of its second week, the Euro is languishing once again at almost parity with the US dollar, after a dramatic dip in values last week. Whilst Britain is not in the Eurozone, its presence as part of the European Union is indeed worth considering as a factor here. David […]

As 2015 heads into the middle of its second week, the Euro is languishing once again at almost parity with the US dollar, after a dramatic dip in values last week.

Whilst Britain is not in the Eurozone, its presence as part of the European Union is indeed worth considering as a factor here.

David Cameron yesterday began to show evidence that he, despite massive pressure from the British public, may be remembered as The Man Who Sold The World, having been quoted yesterday as saying that a “Brexit is not the right answer”, thus sewing seeds of doubt in the minds of economists and corporations alike that he will actually hold a referendum on European Union membership.

Bringing about Changes such as a potential exit from the European Union by Britain would perhaps place Mr. Cameron as one of the political Heroes, however the European economy is being so disproportionately propped up by Britain’s financial powerhouse in the City of London that Britain becoming fully independent of Europe would perhaps see the Euro plunge to lower levels than parity with the dollar.

Whilst many investors in Britain would perhaps be Dancing In The Street if Britain was freed from the shackles of European economic strife, it could be that Mr. Cameron fears the negative impact on the mainland European economy if the country over which he presides pulled out.

Where Are We Now?

Should a referendum be held and Britain’s member status of the EU is effectively Here Today, Gone Tomorrow, it may be a good time to trade the Euro against the Pound, as volatility would most likely ensue immediately, potentially providing an opportunity for The London Boys to make Day-In, Day-Out profit from the varying value of the Euro against the British Pound should the Pound immediately strengthen and the Euro immediately weaken.

Transatlantic traders would perhaps not need to Be Afraid Of Americans, because, as was predicted by many market analysts toward the end of last year, the US dollar is likely to remain the currency of choice because that will perhaps be the instrument which will hold a steady value whilst the Pound and Euro fluctuate, therefore allowing traders to use it as a benchmark as its value would be a Slow Burn as opposed to the potential volatility among European markets.

 

Capture

Chart courtesy of Google Finance.

 

Read this next

Executive Moves

Crculus taps Michael Idzkowski as head of sales

Michael Idzkowski has joined Crculus, a UK-based startup that describes itself as a multi-custody middleware infrastructure for financial institutions, in the post of its head of sales.

Retail FX

ActivTrades jumps on fractional stock trading bandwagon

CFDs and FX broker, ActivTrades has updated its trading offering to provide its clients with the opportunity to trade fractions of stocks.

Digital Assets

BitMEX to list its native token by end of 2023

BitMEX CEO Alexander Hoeptner said the crypto exchange is planning to list its native token, called BMEX, on the spot market by the end of the year.

Market News

Forex investments take over popular sentiment as a worthy global trend

Quite the confusion is afoot in the financial markets. Tighter regulation, rising inflation, energy sector disruptions, social unrest and wars have taken a toll on the world’s economies. How come Forex, as a means of investment, has come up on top as a global trend in 2022? Against the backdrop of current events, the international broker’s expert team at OctaFX has gathered some answers.

Crypto Insider, Metaverse Gaming NFT

How Hiding Crypto’s Influence Will Be Key To Unlocking Its Success

In past years, cryptocurrency has advanced well beyond the technophiles responsible for its initial success to reach widespread name recognition. Crypto has found its way into news, music, culture, and other relevant facets of daily life. 

Digital Assets

SCRYPT Digital taps Enclave Markets to mirror dark pool trading in crypto

“A service like this has been sorely lacking in the crypto space. There hasn’t been a solution that provides the security or privacy that institutions require with these kinds of trades.”

Institutional FX

FXSpotStream reports record monthly volume at $1.613 trillion

Trading volumes on institutional FX platforms surged in September after fears over the impact of recent developments around Russia’s military invasion of Ukraine sent speculative asset classes reeling.

Industry News

OKX adds four-time Olympian snowboarder Scotty James as brand ambassador

‘What is OKX?’ is the name of the new multi-milion dollar brand campaign launched by crypto exchange OKX as part of its efforts toward world expansion.

Industry News

Circle buys Elements and announces beta version of Crypto Payments API

“Lowering barriers of entry for payments and financial services and establishing dollar payments utility are core to Circle’s mission.”

<