It's a big mess for the 'regular' people of Europe. I've been reading up on several European newspapers and pretty much all comments that are posted in reply to the European bailout say the same; "Get the Euro out of our country and convert it back to the way it was!" Most people in Europe absolutely hate and despise the currency. Of course it's not that simple anymore and it will take some time before it gets too out of hand, and even banks for example start to wonder if the Euro was such a good idea. Once again, the higher the Euro trades (a good benchmark is the EUR/USD) the more expensive the exports from Europe are. With China, Brazil and other emerging markets laughing on the sideline loaded with tons of cash, Europe is slowly but surely walking further and further on the path of Doom. A united European monetary system was and always has been a big joke, even since the beginning - and I have always stand by this standpoint and always will be. A united European currency was originally designed to offer a stronger economic backbone to the US Dollar, which was at the time more valuable than the Euro. And at the same time be also more competitive against the Japanese Yen. Whether or not the leaders of the European Union at the time had China, Brazil, India and other emerging markets in mind I don't know, but it certainly doesn't look like it now.
The problem is something that will affect us all, no matter where you are in the world. If the Euro fails it will drag other countries with them, and as far as I know a second major recession like the last one will be devastating to the US and other countries.
Each individual country should have its own economy and their own financial responsibility.
Well, that was a nice long intro, how about we get to the actual trade; the EUR/USD
Forgive my crappy handwriting, just trying to get my point across :)
Any suggestions regarding this trade or previous comments about the Euro is greatly appreciated!