Europe: The risks
Here are the main risks that Europe faces in the next six months.
- France economy
- Deutsche Bank
We are cautious on EUR and on European equities.
EU is entering an unchartered territory.
Growth is not strong enough in the eurozone at the moment and it is unlikely to be a lot faster in the coming year. With consumption and consumer confidence and unemployment continuing to fall, however, the recovery does now have its own momentum.
Now the bad outcome is realised, we suspect the market will be consistently looking to sell EURUSD rallies.
Trading foreign exchange and CFD’s on margin carries a high level of risk, and may not be suitable for all investors. The high degree of leverage can work against you as well as for you. Before deciding to invest in foreign exchange you should carefully consider your investment objectives, level of experience, and risk appetite. The possibility exists that you could sustain a loss of some or all of your initial investment and therefore you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with foreign exchange and CFD’s trading, and seek advice from an independent financial advisor if you have any doubts.