Learn-To-Trade.com Inc. (www.Learn-To-Trade.com), Toronto’s leading provider of professional stock market trading courses designed to create successful traders on the financial market, is weighing in on the euro losing value and its impact on currency traders.
“The European Central Bank slashed all its main interest rates and announced a new stimulus plan,” says George Karpouzis, co-founder and director of education at Learn-To-Trade.com Inc. “Immediately after the rate cut was announced, the euro fell 1.6% against the U.S. dollar to $1.29, a 14-month low. At the same time, the rate cut helped boost European stock and bond prices.” (Source: Blackstone, B., “ECB Cuts Rates, Announces Stimulus to Combat Low Inflation,” The Wall Street Journal, September 4, 2014; https://online.wsj.com/articles/ecb-cuts-interest-rates-in-surprise-move-1409832304.)
Karpouzis explains that the European Central Bank (ECB) cut its main interest rates in an effort to help kick-start the eurozone’s lagging economy. Italy, the region’s third-largest economy, is in recession; France, the second-largest economy, is on the brink of a recession; and Germany’s recovery is showing signs of weakness.
Most recently, the Organisation for Economic Co-Operation and Development (OECD) cut its outlook for the eurozone’s gross domestic product (GDP) growth, revising it to an anaemic 0.8% in 2014 and 1.1% for 2015. According to the OECD, growth remains weak in the euro area and runs the risk of prolonged stagnation if further steps are not taken to shore up the economy and boost demand. (Source: Thomas, L., “OECD slashes growth forecasts, urges aggressive ECB action,” The Financial Post, September 15, 2014; https://business.financialpost.com/2014/09/15/oecd-slashes-growth-forecasts-urges-aggressive-ecb-action/.)
Since May, the euro has given up serious ground, says Karpouzis. The Euro Index, which compares the euro to a basket of five currencies, is down 7.06% since reaching a high in early May and is down 1.6% since the ECB announced its interest rate cut on September 4. The U.S. dollar, on the other hand, is experiencing a renaissance, up 6.3% since the first week of May and up 1.6% since the ECB announced its new stimulus program.
“In the currency market, there are no bear or bull markets; investors speculate on the volatility of one currency against another,” Karpouzis concludes. “At this point, it doesn’t look like the euro will perform very well in 2015, especially in light of the economic outlook for the region’s top three economies. This divergence and ongoing market volatility creates an interesting investing opportunity for forex traders.”
Learn-To-Trade.com Inc. is the leading provider of stock market training courses in the Greater Toronto Area. Led by licensed, industry professionals, its extensive courses provide its Members with the necessary tools to trade financial products in today’s complex and fast-paced markets. Stock trading training courses with Learn-To-Trade.com Inc. teach investors both basic and advanced stock market investing principles, including how to read and understand stock prices and quotes, fundamental analysis and technical analysis, and various trading strategies. Through its Lifetime Membership, Learn-To-Trade.com Inc. also provides extensive training and knowledge in stock option trading, stock index trading, futures trading, futures option trading, forex trading, risk management, and capital preservation. Members utilize real-time, simulated trading platforms to paper trade until they gain the confidence to make independent market decisions and produce consistently profitable results. As the leading and oldest financial educator in Canada, Learn-To-Trade.com Inc.’s instructors are also educators for the Toronto Montreal Exchange, through which its instructors host educational sessions for the major banks across Canada. To learn more about Learn-To-Trade.com Inc., visit the web site at www.Learn-To-Trade.com. Contact the company by phone at 416-510-5560 or by e-mail at email@example.com.
Latest posts by George Karpouzis (see all)
- Record Stock Market Being Fuelled by Speculation, Not Earnings Growth - July 9, 2019
- Market Review – June 2019 - July 3, 2019
- Is the S&P 500 on the Brink of a Third Quarter Correction? - July 2, 2019