Ad Support : Nano Technology Netbook Technology News Computer Software
Barrons – “Large investors will think twice about further investment in the euro, at least until such uncertainties are resolved,” notes BNP Paribas’ currency strategist, Hans-Guenter Redeker. Most investors have yet to pencil in much weakness beyond this year, and a survey of global banks pegs the euro at $1.30 for 2011. Still, dollar bulls like BNP and Brown Brothers see the euro pushing down to parity, or $1, early next year.
If belt-tightening works, Europe will have to replace waning domestic consumption with foreign demand, and a weaker euro will make exports more competitive. Yet “if fiscal-austerity plans don’t work, the euro loses credibility. Either way, the euro weakens,” says Marc Chandler of Brown Brothers Harriman.
The interest-rate outlook also favors the greenback. The U.S. may have a knack for keeping borrowing costs artificially low and swelling asset bubbles, but even its benevolent central bank will have to consider raising rates as the economy expands for a fourth straight quarter and as employers hire again. In contrast, a big swath of Europe is grappling with sluggish growth, and Spain is plagued with 20% unemployment (see table below). The ECB can’t easily boost rates before the U.S. does.
If you liked this article, please give it a quick review on Reddit, or StumbleUpon. Thanks
Supporting Advertising
Business Success
How to Make Money
Executive Jobs
Paid Surveys
Thank You
Brian Wang is a Futurist Thought Leader and a popular Science blogger with 1 million readers per month. His blog Nextbigfuture.com is ranked #1 Science News Blog. It covers many disruptive technology and trends including Space, Robotics, Artificial Intelligence, Medicine, Anti-aging Biotechnology, and Nanotechnology.
Known for identifying cutting edge technologies, he is currently a Co-Founder of a startup and fundraiser for high potential early-stage companies. He is the Head of Research for Allocations for deep technology investments and an Angel Investor at Space Angels.
A frequent speaker at corporations, he has been a TEDx speaker, a Singularity University speaker and guest at numerous interviews for radio and podcasts. He is open to public speaking and advising engagements.