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February 4, 2023

X-Trade Brokers: Economic downturn to increase imbalances among EU member states

The US Dollar appreciated at a record level for the last months, while the situation of Greece is still putting pressure on the European single currency. The economic growth reported by the USA for the last quarter of 2009, estimated at almost twice the level of the previous quarter, is expected to once again support the USD, against the EUR. This week, financial markets are expected to remain highly volatiles.

“Economic downturn will increase the existing economic imbalances between EU member states, and the disastrous evolutions of some of these states threaten the effort made by developed countries to faster overcome the crisis, by pressuring the single currency, with strong implications for economic exchanges. For the next years, it is very possible that the European financial mechanisms will go through some changes, meant to protect the Euro currency and to avoid undermining the evolutions of developed countries,” said Victor Safta, the head of the Romanian office of X-Trade Brokers, the biggest brokerage house of Central and Eastern Europe.

“International markets will remain highly volatile in the near future, when we expect major short-term fluctuations, because several indices – with more than significant influence – will be announced these days: the American GDP during the last quarter, the EU unemployment rate, indices of the real estate markets in the USA and Japan, indices reflecting the confidence of the business environment in Germany etc.” the X-Trade Brokers analysts explain. “Concerning the RON, apart from its own > against various international speculators, the currency is likely to experience high volatility itself in the near future, and we still expect the Central Bank to >,” Victor Safta added.

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