“The COVID-19 pandemic has entered a new phase with the Omicron variant, which could infect 60% of people in Europe by March, and could bring it to an end, the World Health Organization’s Europe director Hans Kluge says.”
“We anticipate that there will be a period of quiet before Covid-19 may come back towards the end of the year, but not necessarily the pandemic coming back,” Kluge said.
This statement is a breath of fresh air for the European Union, that’s the only prediction for another 2 months, for now Europe is facing the big Omicron wave that is sweeping across Europe, continuing to rise and reach above record highs every day. Further statements that Covid-19 may return at the end of the year, put pressure on the European Union economy which made the euro currency weaken due to fund outflow from the euro area.
Furthermore, elections across Europe in 2022 could shake market equity and money market conditions, provoking mass riots and changing policy from taxes to climate change. This uncertainty tends to make the euro weaken, list below are the election schedule around Europe:
- Portuguese legislative election — January 30
- Serbian general election — April 3
- French elections — presidential votes April 10 and 24, parliamentary votes June 12 and 19
- Hungarian parliamentary election — expected in April
- Slovenian elections — parliamentary vote April 24, presidential by October
- Northern Ireland election — May 5 or sooner
- Swedish general election — September 11
- Austrian presidential election — date not set
- Latvian parliamentary election — October 1
- Bosnian general election — October 2
A tension between Russia and Ukraine leads to a potential military flare-up that threatens Eastern Europe fragile relations, which started earlier this month in an uprising in Kazakhstan. It also has serious consequences for security around the European region.
Europe has important trade relations with Russia, and will lose far more than the US from the sanctions imposed after Russia’s invasion of Ukraine. It also relies on Russian gas supplies, a weakness Putin has exploited in disputes in the past.
Supply Chain Bottleneck is also the main part of weakening the euro currency, it’s becoming a major concern for the governments and becoming a major cause for high Inflation across Europe, also inflation is running at the highest level since the creation of the euro. Most of its citizens struggle with their gas and grocery bills, and watch their hard-earned savings burn.
With the several reasons mentioned above, the Euro could weaken against other basket currencies. Traders can utilize this opportunity to take positions to gain profits. Bear in mind, don’t forget fundamentals and money management to secure your trading.
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