14 February, 2017
The Euro has come under pressure late in the European session today, after analysts warned of the huge costs that France would face should they decide to ditch the European currency.
At 6.15pm (GMT) the euro was trading at $1.0600 down from $1.0637 in yesterday’s trading.
National Front leader and presidential candidate Marine Le Pen, claims that the Euro is just a political instrument and her country would be better off with a different currency all together.
She also added that some of her proposed policies are unattainable as long as France continues with the Euro,
“I can’t implement my promises of intelligent protectionism and industrial policy with the single currency,” Le Pen said.
“It’s a brake on the economy, it’s an obstacle to the recovery. The euro isn’t a currency, it’s a political tool.” she added.
Banque de France governor Francois Villeroy de Galhau said that the consequences of France exiting the Euro would be huge, and greatly increase the cost of borrowing which he claims is already happening over a possible break with the Euro,
“The recent increase in French rates ,which I believe is temporary corresponds to a certain worry about the exit from the euro, If we were alone, we would be helpless faced with financial market speculation and helpless faced with US pressure on the dollar," he said,
"Financing France's public debt would cost over 30 billion euros $31 billion a year .That might seem a bit abstract to listeners, but 30 billion euros, to be very concrete, is equivalent to France’s annual defense budget,” he added.
The market had been expecting such a move so all eyes were on the following monetary statement for signs of the US central bank's future moves...
The Gold price has continued to rally today after yesterday's release of consumer price index figures from the US threw into doubt the ability for the US...
The British pound has been well supported over the last few days as speculation that a rebellion within against Prime Minister May's conservative party...
The oil prices is trading higher in today's trading session, following on from yesterday solid gains after a fall in US crude oil inventories and the...
The US dollar has certainly been the success story of this year gaining strongly against all assets classes including gold with global tensions and higher...
After rallying for most of the year against the major currencies the US dollar seems to have stalled over the last week and according to some...
The British pound has now had its worse run since the global financial crisis and according to some analysts the pain may be far from over...
Higher inflation in the US usually translates to rising interest rates which is usually negative for gold, as higher rates mean bigger yields which tends to leave...
With all the uncertainty surrounding the UK at the moment such as political instability as well as the current Brexit negotiations that seem...