21 February, 2012
FX Markets Were Open And Are Pointing The Way !
What excuse will there be to be short Euro after the Greek deal is signed off !
On top of that the outlook for Europe is decidedly better than the consensus had expected, and even the bears are having to start to take notice of the White Crane Group contention that real demand from Asia and Latin America will continue to support European exports, and therefore the Euro-zone economy as a whole. Not only this, but both China and Japan on the weekend highlighted that they both recognize the need, and are willing, to do more to support the Greece rescue fund efforts via the IMF. In other words the “new first world” of Asia, and probably South America to a smaller degree, will continue to demand European products while feeding capital into the region as well.
The world’s largest economy, the Euro-zone, significantly larger than the USA, is in fine albeit lean shape at the start of what should be a surprisingly great year for Europe. The strengthening of the Euro reflects a sigh of relief from those who mistakenly expected markets to collapse around now. The strength of the Euro is therefore a very positive omen for global equity markets as well.
We really are looking at the scenario I have long mapped out for this year, one of strong equity markets, strong commodity markets, and one of the best years ever for the Euro and the Australian dollar.
Clifford Bennett
What excuse will there be to be short Euro after the Greek deal is signed off !
On top of that the outlook for Europe is decidedly better than the consensus had expected, and even the bears are having to start to take notice of the White Crane Group contention that real demand from Asia and Latin America will continue to support European exports, and therefore the Euro-zone economy as a whole. Not only this, but both China and Japan on the weekend highlighted that they both recognize the need, and are willing, to do more to support the Greece rescue fund efforts via the IMF. In other words the “new first world” of Asia, and probably South America to a smaller degree, will continue to demand European products while feeding capital into the region as well.
The world’s largest economy, the Euro-zone, significantly larger than the USA, is in fine albeit lean shape at the start of what should be a surprisingly great year for Europe. The strengthening of the Euro reflects a sigh of relief from those who mistakenly expected markets to collapse around now. The strength of the Euro is therefore a very positive omen for global equity markets as well.
We really are looking at the scenario I have long mapped out for this year, one of strong equity markets, strong commodity markets, and one of the best years ever for the Euro and the Australian dollar.
Clifford Bennett
Clifford Bennett
Chief Economist
White Crane Group
Sydney, Australia.
+61 (0) 423 950 427
clifford@whitecranegroup.com.au
www.whitecranegroup.com.au
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