Euro under pressure as concern mounts
As we suggested over the weekend, despite the fact that the European Union has put together a multibillion euro bailout package should other euro zone economies struggle financially, the markets have taken stock of this over the last few days. Today the euro is under pressure amid concerns that the bailout may not happen (or may not be enough) as well as the growing concern regarding the structural makeup of the European Union itself.
As ever, the headlines over the weekend and yesterday have disappeared and when we get down to the nitty-gritty it is perhaps not as easy and as straightforward as many would have you believe. While there is no doubt that the ambitious bailout plan surprised many with its makeup, size and speed of delivery, the European Union still has much to prove in the eyes of many investors. We may see speculators attacking individual European economies in the days and weeks ahead as more financial difficulties come to the surface and speculators attempt to make money from these scenarios.
We may well be entering a very difficult and a very controversial game of poker between speculators and the European Union with much at stake.
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