Irish Bailout Speculation Drives Markets
Ireland has finally admitted today that it may ask for a bailout as ECB President Jean-Claude Trichet signaled debt ridden nations canâ€™t rely on him to keep their financial systems afloat forever. Lehinan has said that he would welcome contingency capital from the EU’s rescue fund. There is however now a growing concern that banks in countries with struggling economies are becomig too reliant on hand outs to stay afloat. This will undoubtedly lead onto increased animosity as countries start to resent having to pay bail out funds to those that struggle to keep their financial systems in order.
The Irish bank books are being study by financial forensic specialists to determine the extent of the fallout of Irelands problem. Investors are speculating that a bailout package will be announced soon and the Euro has strengthed in trading today as a result. This strength is unlikely to develop into any substantial move however as any Irish bailout news is still fundamentally bad news.
US and European stock markets have soared on the news as speculators gain confidence in the markets and increased likelihood of a bailout package.
UK retail sales data has been released better than expected and has helped to drive Sterling higher against its counterparts. It is unlikely now that any UK monetary policy will be changed before Q1 next year.
Torfx Currency Dealer
If you have any currency requirements and would like to discuss the markets please don’t hesitate to contact me.
Currency Articles - Sep 19, 2018 9:22 - 0 Comments
More In Currency Articles
- British Pound Makes Gains on Brexit News Ahead of US Non Farm Payrolls
- Cardano – At The Forefront of Blockchain
Gold and Oil News - Jan 15, 2019 11:23 - 0 Comments
More In Gold and Oil News
Shares and Markets - Jan 16, 2019 11:36 - 0 Comments
More In Shares and Markets
- FTSE / DAX Still Weak Moving Into End of Year
- Relief Rally on Share Prices as US and Europe Make Gains