Euro bounces back from four year low against the dollar
The troubled Euro has bounced back from a four year low against the dollar amid concerns that budget cuts across Europe will impact upon growth in the euro zone in the short to medium term. The currency hit a low of $1.2237 to the dollar in early trade but rebounded to a level of around $1.2377. However, the concerns about the euro zone persist.
Since the Greek debacle hit our screens only a few weeks ago there has been constant pressure and constant speculation regarding the future of the European Union. Even though stock markets around the world called for austerity across the board, and EU members finally gave into these demands, it seems that stock markets and investors are now more concerned than ever before. In many ways it seems as though investors have already written off the European Union in the short-term even though a EUR750 billion bailout fund has been put aside to cover any future financial difficulties.
Spending cuts will be the name of the day for many months to come across the euro zone as more and more governments fight to contain pressure on their budgets. After a relatively quiet period across Europe it seems only now that investors are starting to test the strength of the European Union.
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