Best Exchange Rate Euros: Will Italy’s Descent Drag Europe With it?

January 31st, 2012
Best Exchange rate euros from Best Exchange Rates uk. It is clear, even to the layman, that the difficulties currently being experienced in the Eurozone are having a dramatic effect on the global economy and, as a direct consequence, on the exchange rate euros can expect to achieve in relation to the major foreign currency markets.  At www.bestexchangeratesuk.com, we observe these changes in the money exchange rates constantly to ensure we are able to provide the best exchange rates uk and to help explain some of the factors involved, we’re going to take a look at the current crisis facing Italy and how it impacts on its European neighbours.
As has been reported in the news, Italy’s long- and short-term sovereign credit rating has recently been downgraded by Standard & Poor’s from “A+/A-1+” to “A/A-1”.  This negative outlook was based on Italy’s continuing heavy debt load, along with a belief that the delicate political situation in Italy was leading to a “tentative policy response” and market uncertainty about the “means of addressing… (its)… challenges”.
In common with other European sufferers of sovereign debt, Italy experienced public unrest when it attempted to vote in austerity measures.  There is concern that Italy will struggle to implement the cuts demanded by the European Central Bank.
Of course, all these measures, along with the S&P downgrade, mean that higher borrowing costs for Italy are likely which will continue to have a negative effect on their economy.  This, in general, would tend to weaken the exchange rate euros can achieve against foreign currency.
To slightly mitigate, there has been hope that the Greek crisis may be resolved with “productive and substantive” talks continuing to provide additional bailouts.  This, along with bond auctions in Greece and Spain led to a boost in exchange rate euros.  Expectation, however, is that this rally in money exchange markets will not last long, as the European debt crisis is far from resolved.
Indeed, according to Polish Finance Minister Jan Vincent-Rostowski, if the sovereign debt crisis engulfs Italy, the euro simply won’t survive.  Whilst he pointed out that the Eurozone as a whole was considerably stronger than the US, it is only as strong as its weakest link and each link is answerable to their individual electorates, rather than the Eurozone as a whole: “Fundamentally, it’s a political problem… If the stronger countries are not willing to exhibit …solidarity, then they have to realize the sovereign debt crisis that started in a small and non-essential country like Greece could spread to Italy and Spain, and there is no way—there is no way—the euro zone can survive a crisis in Italy”.
As always of course, in foreign currency exchange, weaknesses in one area lead to strengths in another.  And, at www.bestexchangeratesuk.com, it is an ability to predict the relationships between currencies that mean we are able to offer the best exchange rate euros can find, along with the best exchange rates for us dollars as all the markets ebb and flow.  The most important thing for money exchange markets to do is to offer assiduous and consistent support to all traders and that we want we strive to do
Best Exchange rate euros from Best Exchange Rates uk. It is clear, even to the layman, that the difficulties currently being experienced in the Eurozone are having a dramatic effect on the global economy and, as a direct consequence, on the exchange rate euros can expect to achieve in relation to the major foreign currency markets.  At www.bestexchangeratesuk.com, we observe these changes in the money exchange rates constantly to ensure we are able to provide the best exchange rates UK; to help explain some of the factors involved, we’re going to take a look at the current crisis facing Italy and how it impacts on its European neighbours.
As has been reported widely in the news, Italy’s long- and short-term sovereign credit rating has recently been downgraded by Standard & Poor’s from “A+/A-1+” to “A/A-1”.  This negative outlook was based on Italy’s continuing heavy debt load, along with a belief that the delicate political situation in Italy was leading to a “tentative policy response” and market uncertainty about the “means of addressing… (its)… challenges”.
In common with other European sufferers of sovereign debt, Italy experienced public unrest when it attempted to vote in austerity measures.  There is concern that Italy will struggle to implement the cuts demanded by the European Central Bank.
Of course, all these measures, along with the S&P downgrade, mean that higher borrowing costs for Italy are likely, which will continue to have a negative effect on their economy.  This, in general, would tend to weaken the exchange rate euros can achieve against foreign currency.
To slightly mitigate, there has been hope that the Greek crisis may be resolved with “productive and substantive” talks continuing to provide additional bailouts.  This, along with bond auctions in Greece and Spain, led to a boost in exchange rate euros.  Expectation, however, is that this rally in money exchange markets will not last long, as the European debt crisis is far from resolved.
Indeed, according to Polish Finance Minister Jan Vincent-Rostowski, if the sovereign debt crisis engulfs Italy, the euro simply won’t survive.  Whilst he pointed out that the Eurozone as a whole was considerably stronger than the US, it is only as strong as its weakest link and each link is answerable to their individual electorates, rather than the Eurozone as a whole: “Fundamentally, it’s a political problem… If the stronger countries are not willing to exhibit …solidarity, then they have to realize the sovereign debt crisis that started in a small and non-essential country like Greece could spread to Italy and Spain, and there is no way the euro zone can survive a crisis in Italy”.
As always of course, in foreign currency exchange, weaknesses in one area lead to opportunities.  And, at www.bestexchangeratesuk.com, it is an ability to predict the relationships between currencies that mean we are able to offer the best exchange rate euros can find, along with the best exchange rates for us dollars as all the markets ebb and flow.  The most important thing for money exchange markets to do is to offer assiduous and consistent support to all traders and that we want we strive to do.

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