MarketLine Blog

Posts tagged to euro

Pound depreciation against euro: A short-term undervaluation trend


The ongoing depreciation of the pound against the euro has provoked many analysts to bet on the parity of these two currencies by the end of the year. However, even top financial firms that still advise investors to ride the tide against the pound, admit that they do so based on the prevailing uncertainty bias over Brexit. This bias is manifested through the contradictory perceptions of investors over the performance of the UK economy. Particularly, the rising inflation in the UK over the last six months has led to the… Read more

Greek debt crisis: Why Grexit is not an option


It is actually proven that undoing a fatal mistake of relying on an overvalued currency does not correct matters. The no alternatives case for the Greek economy on staying in the single currency union is easy to realize after having a close look at its macroeconomic figures that reflect something of an economic collapse. In fact, the heavy reliance of the Greek economy on services and at the same time its lack of a national productive base  rule out the possibility of achieving growth through the adoption of a devalued… Read more

Goodbye, (Alastair) Darling? What happens if Scotland says “Aye” to Independence?


As the referendum date draws closer (Thursday 18th September 2014), a shock narrowing in the polls has led to the establishment contemplating what was once considered unpalatable- the dissolution of the United Kingdom as Scotland seeks political independence. As the “Better Together” campaigns’ lead has gradually eroded, with a tight margin in favour of independence now, the economic ramifications of independence could be huge for both the remainder of the UK and Scotland. Both camps have published analyses of what would happen, with both attracting criticism. As the Better Together… Read more