European Union (EUR, Euro) Economic & Currency Analysis

EU (Euro, Euro) Currency FX Analysis

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EU SWOT Statistics

Strengths + Opportunities = 34

Threats + Weaknesses = 15

When strengths & opportunities substantially exceed threats & weaknesses an investment in the Euro has great long term potential.

The European Union is an organization limited to those countries found in Europe. The EU is a financial organization formed to make the monetary system in Europe uniform. The countries that have joined the EU have given up their countries monetary system and have adopted the common EU currency of the euro. The euro trades on the world's money markets and is based on the trade deficits and gains of the combined members of the EU. Not all countries in Europe have joined the European Union. The United Kingdom is still a part of the Common Market and has kept its monetary standard. The euro has done much to erase many of the member countries identification with their former monetary systems. Countries like Turkey and those whose boundaries are not a part of Europe are not allowed to join the EU.


Euro Currency Analysis Update

The European Union (EUR) is a single market and currency group of countries, which creates one of the largest and most diverse markets in the world. European Union's Fundamental Currency Analysis (short term investment): The EUR is fairly valued versus other major global currencies. They have a positive investment flow and negative purchase price parity. European Union's Value Investor Survey (short term investment): the economic environment is favorable for long term economic growth due to favorable scores on government transparency and SWOT opportunities. European Union's Currency Trading Strategy: A moderately-valued currency, high investment flow potential, but low purchase price potential and negative SWOT weaknesses lead to a slightly negative outlook for EU investments.


Factors That Positively Affect The Euro


Factors That Negatively Affect The Euro

  • Declining Birth Rate The effects of a declining population can be adverse for an economy which has borrowed extensively for repayment by younger generations; however, a smaller human population has a smaller impact on...
  • Unemployment Benefits Hurt Work Incentives Generous government incentives hurt the incentive for workers to leave unemployment and find jobs. Many in Spain turned to the black to make extra income while still receiving unemployment benefits....