German Finance Minister single-handedly destroys the euro
Just as Timothy Geithner sent the U.S. dollar roiling the other day when he talked about considering China’s proposal for a new system of reserve currency, today’s remarks by the German Finance Minister have sent the euro plummeting in forex trading.
Peer Steinbrueck made comments about the stability of the euro today, and that is sending the euro down dramatically against the U.S. dollar in currency trading. GFT’s Boris Schlossberg reports on the German Minister’s remarks in FX360:
“Germany, as a member of the EU, has a massive interest in the credibility of the Stability and Growth Pact, which as you know is not taken so seriously by some," Steinbrueck said in a speech to parliament. "If it is not taken seriously, I am telling you, the euro will have trouble one day in terms of its own credibility and stability."
This underscores the importance of what financial leaders have to say. When they make comments, they either instill confidence or fear into financial markets. When the comments are mostly about currencies, forex trading is affected.
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