Euro Showing Short Term Improvement Following Cyprus Bailout
As Cyprus finally manages to come to an agreement with international lenders over a 10 billion euro bailout, the Euro has seen some positive movement in response. Finally pulling away from its four month low, this morning the central European currency achieved an online trading value of $1.3040, an improvement which has been desperately sought by Forex traders across the world.
Short term fluctuation
However, though euro zone finance ministers were quick to endorse an agreement which should stop Cyprus facing total financial ruin, many investors are not seeing this positive step in Euro value as anything other than a short term fluctuation.
Cyprus saved from bankruptcy?
Though in the short term, Cyprus is now saved from immediate bankruptcy, many are not questioning which will be the next European country that is going to need outside support, and what effect further devastation will have on the strength of the Euro moving forward.
Disbanding one of the banks, part of the Cyprus bailout
This latest financial bailout agreement is going to involve the disbanding of one of the two key banks within Cyprus and many feel that the financial restructure that is going to be required could expose the current European financial situation to further criticism which would mean the effect that this most recent country wide crisis has had on investment in the Euro could be far from over.
Not the life saver we hoped for
And while residents and investors in Cyprus can breathe a sigh of relief that the worst is over, at least in the short term, those with a heavy reliance on the value of the Euro are not seeing this latest agreement as the life saver that we all hoped it would turn out to be.
