The price movements of the Euro/USD and Euro/CHF are very much influenced by the overall political and economic environment. However, as I have mentioned in many previous articles, it is a complex world with lots of variables that can affect the price movement.
There are two basic elements that affect the behavior of the currency market. The first factor is the state of the global economy. This is very important as it affects the state of economies of all countries. Some analysts believe that the recent rise in global unemployment is mainly due to the global economic slowdown.
In my opinion, it is the European Union that should bear the major brunt of the negative impact of the economic situation on the Euro/CHF rates. In the last few months, there have been several negative news stories released by several major European newspapers, most of which contain some very disturbing news about the political instability of various governments of the EU.
According to several studies conducted by experts and finance journalists, the European Union has now entered into a period of political instability. This has led to the decline in confidence among European citizens. In fact, many experts feel that this will lead to a fall in the Euro/USD and Euro/CHF rates.
Even if the Euro/USD and Euro/CHF rates continue to rise, it is clear that there is no major reason for this to stop the markets in their tracks. In fact, if you think carefully, there are reasons why the Euro/USD and Euro/CHF rates could stay steady even though the Eurozone economy continues to falter.
For instance, many financial experts feel that the economic stability of the European Union is based largely on the level of economic activity carried out by its citizens. If the economic performance of the citizens of the EU improves, the overall economic situation will improve also and this will in turn lead to more positive changes in the global economy.
On the other hand, if there is any kind of political crisis in the EU, then this could cause a negative effect on the overall economic stability of the Eurozone and could even lead to its collapse. Although there has been some talk about political instability in the last few months, there has been no concrete evidence to prove this.
However, it would be a wise move for every investor who buys the Euro to make sure that political instability is not the primary reason for this weakness in the Eurozone. To buy the Euro in the long term, you would need to have a good view of the current political and economic situations of the Eurozone. Only then would you know when it is a wise move to buy.
One reason why the Eurozone economy has been falling apart is because many countries have been experiencing serious fiscal problems in recent years. As these countries become unable to meet their domestic expenditure requirements, they may find themselves in deep financial problems that could result in financial crises and ultimately in the implosion of their respective economies.
Because of the collapse of the economies of some countries, many investors fear that the Euro/USD and Euro/CHF rates could also fall due to this negative impact. on the economies of the Eurozone.
There is no doubt that the economic stagnation in some countries could lead to more political and social instability. However, this can only be expected if there is a major shock to the economy and most experts believe that this will happen only during the next few years.
Therefore, it is important to bear in mind that if you are an investor looking to invest in the Euro, you need to keep an eye on developments in the European economy so that you can identify possible political or social instability and the effects this could have on the Euro/USD and Euro/CHF rates. If you are one of the people who are holding Euro for longer periods of time, it will be best for you to wait until such time that the political and social turmoil has subsided