Chaos Sweeps Away the World We Know! The Disaster, current events & Catastrophe Blog. Forecasts for 2014 to 2022. Read tomorrows news today! Plus current economic, commodities, stock indices and financial news.
May 10, 2012 –The Euro Seems Immune to the Chaos that Surrounds it: The euro has been weakening against the yen and would likely be lower against the Swiss franc were it not for efforts by the Swiss National Bank to halt its currency’s rise. But when it comes to its resilience against the U.S. dollar, market participants rattle off a list of reasons. Perhaps the most dominant, they say, is a state of balance between capital flows in and out of the euro zone.
On the downside for the euro: Investors have pulled nearly $15 billion from European stock funds since the start of the year, according to data from EPFR Global. That overwhelms the almost $4 billion that has gone into European bond funds, and the disparity exerts downward pressure on the euro.
On the other side of that equation: European banks have…
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