In Frankfurt the talking heads of the ECB are debating a euro rate cut. What will it be? 75bp?
Lately we saw that currencies are reacting more actively on these decisions as they did in the past. That’s called competitive devaluations in the race to the bottom. So it will be interesting to observe the reaction of the euro. Versus the dollar, sure. But even better: versus the GBP.
How is Europe going to cope with the fast growing divergence between the large countries and the PIGS (Portugal, Italy, Greece and Spain)? And Ireland, too. Questions. No answers.
Lately we saw that currencies are reacting more actively on these decisions as they did in the past. That’s called competitive devaluations in the race to the bottom. So it will be interesting to observe the reaction of the euro. Versus the dollar, sure. But even better: versus the GBP.
How is Europe going to cope with the fast growing divergence between the large countries and the PIGS (Portugal, Italy, Greece and Spain)? And Ireland, too. Questions. No answers.
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