Forex Broker---- Since June 7th, the dollar has been moving down. The dollar index hit 88.71 at high that day, and plunged to 84.42 on July 1st. The euro, however, started to rise, with completely consistent time and nodes. The euro entered the access to rise on June 7th at 1.1875, and soared up to 1.2496 on July 1st, and 1.2591 on July 6th.This is a perfect cooperation between the euro and the dollar, and even can be regarded as a model of cooperation in monetary wars on forex market. Should the euro continued to fall, European debt crisis would be trapped in a black hole where they cannot get through financing in global forex market because of a unbearably high financing cost. In the past three months, the Greek credit default swap rates surged sharply. Calculated from the second quarter this year, Greece will have 55.6% chance of default in the future 5 years, second only to Venezuela. The alleged fiscal austerity plan is to evolve the sovereignty debt crisis into a hanging noose for euro-zone economy.
The rise of euro eases the urgent needs of the euro. On July 1st, 315 billion of long-term low-interest loans of European Central Bank expired. The forex market is expected to experience another round of bank liquidity crisis, which would defeat the banking industry in Spain, Portuguese and other countries. Yet the short-term low-interest rate loans of European Central Bank were not high, indicating no shortage of liquidity among European banks. The rise of the euro infuses confidence to global forex investors--Forex Broker: IKONFX
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By Amanda