Euro under pressure as dollar heads higher

As the situation in Greece, Portugal, Spain and other Eurozone economies continue to worsen there is increasing pressure on the Eurozone which has seen the dollar and sterling move higher. Despite the fact that the euro was put forward by many as the future "golden currency" it has come in for severe criticism and severe pressure over the last few days.

There are serious concerns that Greece, Portugal and Spain in particular may well struggle to meet their financial obligations in the short to medium term and hence require financial backing from the European Union. The truth is there have been concerns about the state of many Eurozone economies over the last few months although the Eurozone as a whole had appeared to be heading in the right direction.

Investors are now looking for the next economy to crack and the truth is that there are a number of potential casualties starting to emerge. There is also a renewed criticism about the speed at which the European Union has been expanded over the last few years and the quality of some of the countries and economies which have been welcomed into the fold. Whether the EU as a whole will live to regret bringing in an array of smaller countries such as those in the Balkans remains to be seen!