Call 800 665 0411 to learn about our services for your stock

Search   Follow Investorideas on Twitter   Investorideas is on Facebook   Investorideas is on Youtube   Investorideas is on Pinterest  Investorideas is on stocktwits   Investorideas is on tumblr   Investorideas is on LinkedIn   Investorideas Instagram   Investorideas Telegram   Investorideas Gettr   Investorideas RSS

Share on StockTwits

Political chaos in France and rate cuts signal Euro volatility ahead: deVere CEO


July 8, 2024 ( Newswire) The euro could face turbulence for the rest of 2024 as the currency is left reeling as France plunges into political chaos and the ECB remains on course for another rate cut.

This is the analysis of Nigel Green, CEO of deVere Group, one of the world's largest independent financial advisory and asset management organizations, following an unexpected victory by a left-wing coalition, which includes the Socialists and the far-left France Unbowed.

He comments: "The shock outcome has stoked fears over France's financial stability, sending the euro tumbling by as much as 0.4% before making a slight recovery.

"With no party securing an outright majority, the political gridlock is poised to stymie effective policymaking and progressive reforms.

"Although markets might find some comfort in avoiding a far-right triumph, the fragmented vote means legislative paralysis is a real threat.

"Adding to the euro's woes, the European Central Bank (ECB) is widely expected to go ahead with another interest rate cut, following one in early June.

"Rate cuts will weaken the euro by making it less attractive to investors seeking higher returns."

Given the euro's uncertain outlook, investors should consider five strategies to safeguard their portfolios.

First, reducing reliance on the euro by investing in more stable currencies such as the US dollar and Swiss franc can mitigate risks associated with euro volatility.

Second, utilizing currency-hedged funds can also protect against currency fluctuations, offering a safer investment option amid euro depreciation concerns.

Third, assets like gold and other precious metals traditionally perform well during economic uncertainty, serving as a hedge against currency weakness and inflation.

Fourth, working with a financial adviser will help you sidestep the risks associated with the volatility.

And fifth, investing in emerging markets that have less correlation with the Eurozone can offer growth opportunities and diversification benefits, reducing the impact of euro depreciation.

Nigel Green concludes: "The euro faces a challenging year ahead, beset by political instability in France and the ECB's proactive rate-cut strategy.

"As 2024 progresses, vigilance and adaptability will be key to protecting investments and seizing opportunities amid the euro's tumultuous predicted medium-term trajectory."

More Info:

Disclaimer/Disclosure: is a digital publisher of third party sourced news, articles and equity research as well as creates original content, including video, interviews and articles. Original content created by investorideas is protected by copyright laws other than syndication rights. Our site does not make recommendations for purchases or sale of stocks, services or products. Nothing on our sites should be construed as an offer or solicitation to buy or sell products or securities. All investing involves risk and possible losses. This site is currently compensated for news publication and distribution, social media and marketing, content creation and more. Disclosure is posted for each compensated news release, content published /created if required but otherwise the news was not compensated for and was published for the sole interest of our readers and followers. Contact management and IR of each company directly regarding specific questions.

More disclaimer info: Learn more about publishing your news release and our other news services on the newswire

Global investors must adhere to regulations of each country. Please read privacy policy: