A European Bailout?
Written by A Forex View From Afar on Wednesday, October 01, 2008Mainstream media has reported that France, which now holds the presidency of the European Union, plans to organize a meeting this weekend with the major Euro-area leaders to analyze the consequences of the credit crisis on the European economy.
This comes after more European based banks are in need of government bailouts and some Euro-area indicators for member countries saw deep plunges, including Spain, Ireland and to some extend France. Sources have said the plan would reach 300 billion-euro ($422 billion), but details are so far limited.
On the charts, it will probably not have an immediate effect on the euro’s valuation. However, if France’s plan is approved and adopted in the coming weeks, it is possible that surging dollar will slow down. The greenback advanced during the last few trading sessions as speculation that once the bailout plan is approved, the U.S. economy will resume its path of growth increases. It now seems the Euro-area will resume this path as well, in theory at least.
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1 comments: Responses to “ A European Bailout? ”
By Anonymous on October 2, 2008 at 4:25 AM
You're right!
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