IG Recommends Buying the Pound and Selling the Euro. As the concerns surrounding what is happening in Spain continue to grow, there are issues surrounding whether or not the euro is an appropriate currency for people to invest in. One of the more prominent spread betting organizations in the world states that people should avoid working with the euro as the risks involved with the currency have become far too intense and concerning. This is leading to a call for people to potentially sell off the euro and focus on other currencies in the continent, particularly the British pound.
Joshua Mahony from the spread betting group IG announced online that people should be looking into buy the British pound when investing in currency while avoiding the euro. The prominent market analyst says that the risks surrounding the euro at this moment are too strong. He encourages people to sell the EUR/GBP pair in particular.
The main concern that Mahony holds involves worries surrounding the ongoing issues in Spain. There are concerns as the Catalonia region continues to threaten to break off from the rest of the country. The main issues involve the Madrid government refusing to accept any efforts by the Barcelona government to get Catalonia to split off.
Mahony says that the uncertainty surrounding the situation in Spain is going to hurt the euro in many forms. This especially comes as Spain’s status in the European Union could become shaky.
The EUR/GBP pair has experienced substantial issues in recent time. The pair had been at around 0.93 around the late part of August. That total has declined to 0.88 in mid-October. While a slight rebound occurred during the early part of October, the currency is continuing a downward trend as the euro could be hit by ongoing worries in the region.
The British pound is also expected to rise as currency firms in the United Kingdom are aiming to focus on Bank of England functions. They are looking to get away from discussions on the Brexit move and other political considerations. This would be as a means of allowing the British pound to continue to grow and be a viable investment opportunity for all around Europe.
Although the euro could be harmed by the Catalonia move, not all analysts are convinced that the euro could lose its value as a result of what is happening. Commerzbank analyst Esther Reichelt says that the political issues of the Eurozone only impact the value of the euro when the entire Eurozone is actually influenced and not just one part of the zone. Reichelt also argues that the euro would have to be altered by the Brussels government in terms of producing different results for making the euro worthwhile.
The overall concerns being held towards the euro give off the suggestion that the currency could be at risk of possibly losing its value. IG is encouraging people to take a look at the British pound while selling off the euro at this current moment as a means of avoiding the risks that might develop as a result of recent actions.
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