Germany should take a leaf from Switzerland's book and fix the exchange rate of a relaunched DEM against a 'Latin euro' at "whatever was deemed bearable, for as long as needed" if it exits the euro, says Ambrose Evans-Pritchard (Daily Telegraph). The SNB introduced a 1.20 minimum EUR/CHF exchange rate on 6 Sept last year and has kept it there ever since. Germany was one of the 11 founder members of the euro on 1 Jan 1999, after EUR/DEM was fixed at 1.95583 on 31 Dec 2008. Germany is 25-1 to leave the euro before the end of this year, according to Paddy Power.
EUR/USD May 22 at 12:35 GMT
1.2925/26 (0.15%)
H1.2957 L 1.2903
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Trading foreign exchange 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 trade 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 trading and seek advice from an independent financial advisor if you have any doubts.
Any opinions, news, research, analyses, prices or other information contained on this story, by FXstreet.com, its employees, partners or contributors, is provided as general market commentary and does not constitute investment advice. FXstreet.com will not accept liability for any loss or damage, including without limitation to, any loss of profit, which may arise directly or indirectly from use of or reliance on such information.
