Forex Online Trading – Is there a future for the Euro?

Forex Online TradingForex Online trading news about the Euro are coming strong, especially after Spanish finance minister Luis de Guindos said on June 1st that the future of the Euro will be determined over the next few dramatic weeks.
“I don’t know if we are on the edge of a cliff, but we are in a very, very difficult position” de Guindos said in the XXVII Economic Circle Forum, held in Barcelona, Spain. “The future of the Euro is going to play out in the next few weeks in Spain and Italy”.
Forex online trading brokers have been following Spain and Italy`s economic situation very carefully, as concerns over their inability to balance their budgets and reduce their unemployment rates keep rising, especially among the bigger European economies.
Even though the current situation is “a crossroads moment for the Euro”, the Spanish minister has shown confidence that the monetary unity will prevail. “The Euro is the cornerstone for the European Union to stay afloat, and any sign of dissolution would bring more uncertainty and crisis”.
The ministers` declarations come about as new data showed Spain`s unemployment rate at a record 24,3% and the admittance by budget minister Cristóbal Montoro that the country`s regional governments had balanced their budgets only because the central government had brought forward 5bn in payments to the most cash-strapped regions.
The newfound negative attention Spain has acquired over neighbors Italy and Greece during the last weeks has brought a downfall in the forex online trading EUR/USD pair that has been going on for consecutive weeks now.
Consequently, Europe is expressing solidarity to Spain`s own sovereignty in dealing with their own economic situation but making clear that a contingency plan could be ready. “If the Spanish government finds it necessary, we have cooperation mechanisms that we can rapidly put to use”, said the French finance minister, Pierre Moscovici.
Spain is also at the eye of the storm for handling the failed lender Bankia financial rescue in “the worst possible way”, according to the president of the Central European Bank, Mario Draghi.
Indeed, Spain must raise 19bn to save Bankia and also needs to find money to prop regional governments, some of whom have been given junk status by rating agencies and as a result cannot raise their own funding.
In the meantime, Germany provided key backing to a European commission proposal to give Spain more time to reduce its deficit to 3% by extending the deadline from next year to 2014.
All this has influenced forex online trading in an expected way. the EUR/USD is playing with the critical 1.2624 line, which is the lowest mark for 2012, set in January. The background is not only the hope for a smooth bailout for Spanish banks, but also Greece`s call for elections in June 17th.
It`s clear for European officials that the debt crisis is affecting the Euro`s forex online trading movement and ranges in a negative way. David Cameron, the British prime minister called for an “urgent plan” for the Euro Zone, and urged U.S. President Barack Obama to restore confidence in the stock and currency markets to keep a strong Euro.