EUR/USD Rallies Ahead of EU Summit, Eyes on 2020 High
The EUR/USD rallies ahead of the EU Summit, eyes on 2020 High, and in the near future. It’s a substantial move in EUR/USD. Some analysts predict a further rise for the USD following that rally, and it’s just a matter of time until we can make predictions as to how much higher the USD will rise before 2020.
Firstly the European Union is very tight knit and there’s probably going to be no major economic issues, there’s just no way around it. The European Union, which has a collective GDP of about $17 trillion dollars, is very powerful and if it becomes a cohesive entity then it’s going to be able to enforce its will on all its member nations.
The European Union is also huge and this is going to make the economic situation worse in a lot of EU nations. The European Union can put a strangle hold on all the nations it chooses.
Then there’s the United States of America, that is made up of 49 separate states. It’s a very cohesive entity and it can probably put a strangle hold on all the other states.
The very small problem with the USA is that it also has a weaker currency than the European Union. The USA also doesn’t have a dominant trade partner like the European Union.
In the economic arena the USA and the European Union are pretty close. It all comes down to the fact that the USA has a lot more buying power than the European Union.
In terms of stocks and bonds the EUR/USD rallies because the European Union is trying to force each nation to join it. This will result in very negative implications for the EUR/USD, both for stocks and bonds.
Also there are no other trading currencies that are really worth looking at right now other than the EUR/USD because it’s on an uptrend and there’s no way that it can go lower. That’s probably the main reason why the EUR/USD is going higher as well.
The leadership in Europe has lots of challenges ahead. They’ll be in a strong position to get whatever they want with the European Union.
Remember that the unity bloc is now the most powerful bloc on earth. The EU has so much political clout that a united Germany is now trying to establish its dominance over the bloc.
The other big winner in the European Union is the United States. The US can simply negotiate trade deals, and policies with the European Union, and this will all lead to massive tax cuts for US citizens.
The European Union has lots of economic challenges ahead and it’s not clear what direction the politics will go. However, the European Union will likely be a force to be reckoned with for years to come.