Gold Market Wire
News, analysis and commentary for gold traders and investors
Euro Breaks Down Again
April 3, 2020 (Gold Market Wire) - The Euro is coming under selling pressure, yet again, as the break down target of the double low at 1.0636 comes into view.
The Euro is giving up the ghost now, and only 1.5 cents away from a true precipice. It seems that nothing can keep the currency from falling, not even the recent Fed movement of US rate targets to .50% is helping. The EU's flagship project, the Euro, is on death watch.
The Corona Bond confrontation, that has now grouped Germany and the Netherlands (i.e. -the 'surplus states') the only functioning economies left in Europe, against the profligate remainder (i.e. 'everybody else') looks like a battle to the end, threatening not only the EU, but tangentially the political stability of Germany itself. The draconian measures over the CoronaVirus haven't helped. The economies of Europe have collapsed into dysfunction that threatens a multi-generation depression.
Add to that, an ageing population, a general North/South divide over fiscal transfers to embattled Italy, that will never be resolved, and will only breed equal resentment on both sides; taxes as far as the eye can see; 0% interest rates; the failure of Maastrict; the rise of separatism in every corner of the European continent, both with regards to the EU (c.f. AFD, Northern League and the Eastern nations' refusal to follow immigration dictats from Brussels) and within nation states themselves (Scotland, Catalonia, Bavaria and others) and one must ask themselves...
Who in their right mind would own this currency?
Let's look at the last line of defense for the Euro against Gold:
Gold, doing what it is built to do - defending you against inept politicians and their insane political machinations. Over the past year, Gold has been the place to secure yourself if you lived, worked or were exposed to the Euro in any way. No wonder they're desperate for you not to have it.