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EUR and Oil Dynamics

EUR and Oil Dynamics

The EUR The EUR The EUR is the official currency of the European Union. Presently 19 out of the 28 collective  nati... More is the official currency of the European Union. Presently 19 out of the 28 collective  nati... More in essence has continued to pick up some value against the greenback The USD is the official currency of the United States of America. It is the largest reserve currency... More as of Wednesday morning as it has fought off a host of concerns: from the potential effects of what appears to be a negative interest rate approach that is being considered by the ECB The European Central Bank The European Central Bank, ECB The European Central Bank, ECB, is the Central Bank of the European Union and sets the monetary poli... More , is the Central Bank of the European Union and sets the monetary poli... More , ECB, is the Central Bank of the European Union and sets the monetary poli... More , the overall health and capability of the European economy to effectively achieve any real prospects for growth while escaping what has become a deflationary environment, and Crude Oil prices that continue to scare institutional investors.

The EUR/ USD The USD The USD is the official currency of the United States of America. It is the largest reserve currency... More is the official currency of the United States of America. It is the largest reserve currency... More has seen plenty of challenges and concerns have increased recently, this under the daily glare of investors as they examine the problems facing the European Union.
The ECB essentially has been forced to admit that the EU has failed to achieve any real growth among its member nations, and most worrying is that Germany has turned in rather lackluster data the past few months and continues to face questions regarding the overall health of its economy. Issues such as the VW scandal have also not helped Germany escape the clutches of a stagnant economy.

Troubling too have been the questions regarding some of Germany’s largest banks, like Deutsche Bank, this because of fears that some banks and others may be holding what amounts to a large amount of bad debt from the oil industry – which has been body punched because of a crumbling price infrastructure. (This is not just a German problem, but a global financial concern).

One of the problems regarding debt and investments into the oil industry is that if banks have been loaning oil corporations money or holding their corporate bonds, that the underlying value of these ‘assets’ have gone ‘underwater’ as oil has staggered to problematic lows. As of this morning the price of Crude Oil ( WTI Refers to West Texas Intermediate Refers to West Texas Intermediate Refers to West Texas Intermediate which is often the actual physical resource that the asset Crude O... More which is often the actual physical resource that the asset Crude O... More which is often the actual physical resource that the asset Crude O... More ) is around $ 38.75 USD and the question is not only if Crude Oil can actually hold those values, but what the outlook for potential gains for its price mid-term and long-term are while the global economy continues to be troubled.

Job data from the States may be a big talking point for many with the Non-Farm Employment Change numbers report to be released this Friday. However, another genuine opportunity for traders who believe they understand market dynamics will be the China Manufacturing PMI data that will come very early Friday morning European time. China economic data has been disappointing investors for quite a while and it may continue this trend on Friday.