Title: Inflation risk is higher in Euro zone than US Post by: yellowpage09 on May 13, 2015, 01:43:00 AM http://www.fxwirepro.com/data/charts/20150512e30fc771yield%20return.jpg.jpg
Euro zone bond yields have risen the fastest, compared to other developed market counterparts. Obvious reason for such is extremely one sided positioning in Euro zone bonds especially German bunds. While a sudden rush for exit might be creating such heavy price swings and high volatility. However fundamentally speaking inflation poses greater risk for Euro zone than US and one might assume that it might be behind this sudden bond rout. Why inflation is a greater threat to Euro zone?
Euro and Euro zone fixed income traders should keep sharp eye on European inflation indicators and commentaries from ECB and its vocal critique German Bundesbank. Euro is currently trading at 1.123, driven by bund yields. (Source: http://www.fxwirepro.com/data/charts/20150512e30fc771yield%20return.jpg.jpg) Title: Re: Inflation risk is higher in Euro zone than US Post by: Amph on May 13, 2015, 07:22:31 AM because i'm from euro i want to ask if
this mean that there are higher chances that the euro would collapse first ? if this happen do you expect a shattering of the european union? they will return to their old currencies or they adopt another strong ones? Title: Re: Inflation risk is higher in Euro zone than US Post by: unsoindovo on May 13, 2015, 12:26:54 PM because i'm from euro i want to ask if this mean that there are higher chances that the euro would collapse first ? if this happen do you expect a shattering of the european union? they will return to their old currencies or they adopt another strong ones? euro will never collapse... there are too many continents involved in to this business... i mean EU debt think to china, us, russian federations, japan... a lot of countries are holding EU debt.... so, they will never do fail eu! Title: Re: Inflation risk is higher in Euro zone than US Post by: Troonetpt on May 13, 2015, 01:17:03 PM Sure, Euro is on going QE, that means a lot of inflation.
And Us is going to add thier interest rate, which is another factor to push the US doller up. Title: Re: Inflation risk is higher in Euro zone than US Post by: pereira4 on May 13, 2015, 03:00:56 PM Inflation is only for the superrich: Manhattan condos, luxury cars, yachts, private jets. The wages for the average have been flat, how could prices go up?
Title: Re: Inflation risk is higher in Euro zone than US Post by: Jeremycoin on May 13, 2015, 03:44:53 PM Is this affect to Bitcoin trading? If it yes, so what is better trading to with EUR or USD?
Title: Re: Inflation risk is higher in Euro zone than US Post by: BobK71 on May 13, 2015, 04:25:13 PM The main thing to remember is that the euro is the biggest competitor to the dollar for global reserve status. There are many powerful reasons for the US and US elites to want to see the euro down.
You can never be sure of course, but the whole sovereign debt saga had a feeling of being a deliberate attack, even though there are real issues in the design of the euro system and in the financial pollution in the southern countries. |