A few days ago the President of Russia Dmitry Medvedev and German Chancellor Angela Merkel discussed a number of urgent problems on the phone, including the current situation in North Africa and the Middle East. They agreed to continue the discussion at the next G8 summit to be held in France next month.
For now, Germany has the highest credit rating, and that's why the experts are not afraid of the economic and political stability of the country Germany.
The main reason for this meeting number is the mechanism of debt relief, which does not lead to positive results. Unlike Germany , the United States do not do almost nothing to reduce the sovereign debt. Monday after Standard & Poor's warned the U.S. that the rating could be reduced, the demand for German bonds has increased enormously. As a result, the 10-year German bonds fell as the yield from 3.4% to 3.232%. The Germany is confirmed as the largest emitter of bonds in Europe.
As for the single currency, the currency pair EUR / USD continues to rise, driven by the fact that the U.S. economy is at a very low and does not seem to be able to find a consensus between the majority and opposition with respect how to reduce debt.
In Europe, on the other hand there is fear about the restructuring of the debt of Greece , which for many is no longer a question of if but a matter of "when." That's why we must be careful this currency pair during the next week, as surely there could be some interesting surprises for those who want to operate. Special attention has also to news coming from the U.S. and affecting the economic situation of the country that decisions about debt relief.
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