As the United Kingdom’s economy continues to struggle throughout the agonizing Brexit process, the Euro is negatively impacted as well. While the Euro was gaining momentum heading into the summer, the warmer months were not kind to the currency. The current downward trend has many concerned about the short and long-term future of the Euro.
Euro Uncertainty Remains
Although the Euro bounced from a six-week low, investors are very hesitant to predict an uptick in the currency’s future. In just the last few days, the Euro plummeted below $1.1900 and the tailspin doesn’t appear to be ending any time soon. Financial experts say the biggest factor hindering the progress of the Euro has to be the ongoing political issues. Can the currency remain stable during a time period that is anything but that across the UK?
Sadly, the UK is not the only country negatively impacting the Euro (although it is the biggest source of agony right now). Political turmoil is taking shape in Germany as well after Angela Merkel’s party took office. Since the election was finalized, the Euro suffered its worst showing since the World War II era. With Germany faced with a similar situation to Brexit (Catalonia’s independence) can the Euro afford two different countries in the same position? Most experts think investors would be wise to hold off until the political landscapes stabilize.
Brexit Impacts Euro
The Brexit negotiations between Britain and the European Union continue in Brussels. The newest topics to arise during talks have centered around jobs and immigration. Politicians are focusing on closing trade deals with the U.S. and within the EU as well. Which trade agreement should be finalized first is the current sticking point. One side says terms need to be hammered out within the EU, while another side argues for the importance of American trade. The longer the talks continue, the more likely the Euro will remain in limbo.