With the Turkish currency Lira hitting the lowest against the US Dollar, the European Central Bank seemed concerned with the exposure of Spain’s BBVA, Italy’s UniCredit and France’s BNP Paribas to Lira weakness.
In addition to this situation, lies the eight years old Greece Economic crisis that often threatened the stability of the Eurozone.
But the upcoming tension of Brexit in 29th March, 2019 tops all the existing tensions. Undoubtedly, Brexit will affect the values of both Pound and Euro is what we assume.
Specially with the Euro slipping down to 14-month low last week, it is evident that all the above tensions has taken a toll in it’s value.
However, it still seems to be a good idea to buy Euro because of it’s hinting recovery in the future.
The Greek Economy is showing recovery and the growth is picking up led by exports. Long awaited jobs are being created and investor’s confidence has been boosted in the country’s condition. The improvement is slow but steady and Greece is yet is face challenges by it’s rate of unemployment, poverty and inequality. Expecting the country’s economy to recover soon will have a positive impact on the Eurozone as a whole.
Now to the very low chances of a “no deal Brexit”, it still seems promising for Euro to have a lesser effect in it’s value than the Pounds.
Because of UK’s outstanding debts and the challenges the British Government might face to meet this debt obligations, the Brexit might have some deal on the Pounds.
On the other hand, Euro might see a fall in it’s value following the Brexit. But even if the Euro falls against the US Dollar, it will definitely have an edge over the Pound.
Yet again, all these are mere assumptions and we need to wait until the United Kingdoms exit the European Union and show whether or not Brexit was a “deal” or a “no deal”.
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