Friday, July 15, 2011

Societe Generale: the risk of euro’s collapse can’t be ruled out

Economists at Societe Generale and UBS are very pessimistic on the future of the euro area: the former advise investors to buy insurance against the collapse of the single currency, while the latter specify their recommendation say that Danish krone may be used for protection as the situation in the euro zone tends to worsen.

According to UBS, as the European crisis escalates, Danmark grows more and more likely to send the peg of its national currency to euro. After suffering from some volatility in the short-term, krone will later strengthen versus other Scandinavian currencies and euro.

The specialists claim that one shouldn’t lose time and has to hurry and hedge it money as the pair EUR/USD has mercifully returned above $1.40.

daily eurusd 17-02

Chart. Daily EUR/USD

published by FBS Holdings © 2011