Will the German elections bring the End of the Euro As We Know It?

As part of the #TradingDebates campaign, Saxo Capital Markets have created an infographic about the Eurozone and its currency, and how the impending German elections could affect them. Angela Merkel looks set to win her country’s election again, but as the de facto leader of the EU, will that mean that the status of the Eurozone crisis will stay the same or even worsen? Follow the facts and statistics laid out in our Eurozone Crisis infographic and decide for yourself.

On 13th September at Bloomberg’s European Headquarters in London some of Europe’s experts in trading, finance and politics will come together to debate the future of the Euro, and more specifically, is this the End of the Euro As We Know It? The upcoming German elections and how the outcome could have an impact on the Euro is just one of the topics that will be debated.

Countries like Greece, Portugal and Ireland have implemented tough austerity policies at the request of Berlin and Brussels, but they remain massively indebted with gross government debt as a percent of GDP continuing to rise. Even Germany is starting to feel the pinch over future perpetual bail outs and debt trimming of peripheral countries - Greece, Cyprus and other peripheral states will probably continue to receive funds from the Troika. If this is an on-going cycle, how long will it take for a majority of German people to feel wholly disenchanted by this?

Despite the risk of an imminent of the Euro, the single currency is trading close to a two-year high versus an evenly weighted basket of G10 currencies. One reason is Germany’s large current account surplus, which has helped prop up the Euro. The Euro has been trading at a range of 1.27 to 1.37 against the USD, however, this could change if, as Saxo’s Head of FX Strategy John Hardy believes, EURUSD will fall to 1.15 in the next 12 months.

If you’d like to join in with this debate, and other topical issues surrounding the Eurozone crisis, then you can attend Saxo Capital Markets’ #TradingDebates event by signing up for free. You could even win a 16GB iPad Mini if you tweet your opinion with the hashtag #TradingDebates on Twitter! You can read more about the competition in the terms and conditions.

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