The sovereign debt scourge's wild, untamed tendencies will continue dragging down the value of the 17-nation single currency, according to Bloomberg.
Widespread doubt about the likelihood of resolving the debt crisis with results from the two-day European Union summit earlier this month in Brussels will continue drawing down the moneypiece, which touched its lowest point since this past January. Bond yields in Spain and Italy are flirting with the same levels that prompted bailout solicitations from Greece, Portugal and Ireland.
"Things are far from complete," global asset allocation head Fredrik Nerbrand with HSBC Holdings told Bloomberg last week. "Most of policy makers' recent debate was with regard to fiscal positions as opposed to the underlying problem, which is a lack of growth. It's kind of like a doctor trying to treat the symptoms rather than the cause."
Also damaging to the euro and the economies of nations that use it re intentions of redoubled scrutiny by credit rating services Standard & Poor's and Fitch Ratings, which is likely to ensue next year.
Thomas Mayer, chief economist with Deutsche Bank, told CNBC that whether the euro will survive the tumult of the debt crisis will become clear within the first six months of 2012.
Risk Disclosure
This material is conveyed as a solicitation for entering into a derivatives transaction.
This material has been prepared by a Daniels Trading broker who provides research market commentary and trade recommendations as part of his or her solicitation for accounts and solicitation for trades; however, Daniels Trading does not maintain a research department as defined in CFTC Rule 1.71. Daniels Trading, its principals, brokers and employees may trade in derivatives for their own accounts or for the accounts of others. Due to various factors (such as risk tolerance, margin requirements, trading objectives, short term vs. long term strategies, technical vs. fundamental market analysis, and other factors) such trading may result in the initiation or liquidation of positions that are different from or contrary to the opinions and recommendations contained therein.
Past performance is not necessarily indicative of future performance. The risk of loss in trading futures contracts or commodity options can be substantial, and therefore investors should understand the risks involved in taking leveraged positions and must assume responsibility for the risks associated with such investments and for their results.
Trade recommendations and profit/loss calculations may not include commissions and fees. Please consult your broker for details based on your trading arrangement and commission setup.
You should carefully consider whether such trading is suitable for you in light of your circumstances and financial resources. You should read the "risk disclosure" webpage accessed at www.DanielsTrading.com at the bottom of the homepage. Daniels Trading is not affiliated with nor does it endorse any third-party trading system, newsletter or other similar service. Daniels Trading does not guarantee or verify any performance claims made by such systems or service.
