The EU summit is taking place this week. Britain is leaving, but other EU leaders are pushing for greater integration. I think they realized that there is nothing you can do forever and you can expect things to get better. Things tend to rot if you don’t move and evolve over time.
The United States of Europe must be positive about the euro
The EU summit is taking place today for the second day. The main issue is Brexit, although unlike the UK, which will have this problem in the long run, it is a short to medium term issue for the EU. One of the issues raised by Brexit is the EU budget. The UK is the second largest contributor to the EU budget. So his departure leaves some holes in the pocket of the EU.
That is if the UK is pursuing a really tough Brexit. Even in this case, Britain is likely to be forced to pay some cash into the budget. However, the UK government seems to be opting for the soft Brexit route, which means the UK needs to cough a lot more, probably as much as it now contributes. And this is happening without much say within the EU.
Europe’s long-term challenge is federal Europe. With Brtain’s departure, which doesn’t really mean leaving now that soft Brexit is taking place, Europe has come to the conclusion that integration needs to accelerate before everything falls apart.
Europe and the West in general have serious problems with globalization, such as the relocation of businesses from the West to developing countries (China, India, Indonesia, etc.), which means that Western governments will have less and less administrative power as taxes to developing countries. countries and international companies together.
Cryptocurrencies will also emerge and will increase the mobility of the capital. The capital will be easier to fly out of countries and safe havens. Safe shelters cause another headache. Until a few decades ago, only Switzerland was a safe haven, today there are dozens of statues that act as safe havens.
Mass migration is the most obvious effect of globalization, and it is another important issue that Europe and the US are trying to address and will address much more. Europe is already paying billions to Turkey and North African states to keep immigrants there and not send them to Europe while Trump takes care of China.
You can take care of globalization if you are a small country like the UK. The UK is a relatively small country these days, despite the fact that many Britons think it is a global empire. But in reality it will be small and smaller as other parts of the world develop and grow. In countries like the UK and France, there is still some power, but its power is declining relative to the emerging new world.
None of them, let alone the smaller European countries, are able to solve the problems of globalization. So the only way is to group culture, race, region, etc. into larger formations. According to. The EU is the first real attempt to build such a formation.
The African Union is also in the process. Which comes next, the South Asian Union? Will there be a Middle East Union. We don’t know how fast things will go, but we know that this is the way, not the chaotic globalization that has taken place in the last 30-50-100 years, depending on the country.
Only trade unions such as the EU can solve these problems. Southern European countries have not been able to stop immigration, nor have northern European countries alone. Nor can Russia or Turkey or Trump stop intimidation because of this.
So while many are opposed to the EU, this is the only step forward, otherwise there will be chaos like during this time. Globalization was the cause of Brexit. The UK wanted a way out of this global frenzy, to which they themselves contributed greatly. But it is not only possible to get out of it, it will take time to build the institutions and get closer to what the EU has been trying to do.
Yesterday, French Prime Minister Macron called for greater integration, while Merkel said earlier today that the EU should build a European Monetary Fund. The banking and other sectors of the European economy are consolidating, which is why we are moving towards a federal Europe.
This is currently slightly positive for the euro, and the euro has found some offers today. The GBP, on the other hand, is a significant loser. Inflation is cooling in the UK, so the BOE (Bank of England) may not raise interest rates in May, we’ll see.
He is looking for vision
Bullish USD / JPY
- A trend bullish
- 50 SMA provides support
- The feedback seems complete
The 50 SMA stood still
We’ve been on this forex pair for a long time since last Friday. The lower retreat continued yesterday, but the upward trend continued again today. There was another retrieval early today, but the 50 SMA (yellow) provided support and the stochastic sold too much, so I think the bullish trend will continue soon. If you do not follow our USD / JPY sign, you can shop here.
The Bank of Canada will publish the interest rate decision and statement very soon, so it’s better to post this update and see what’s in the BOC in your bag. The USD / CAD is waiting uncertainly as U.S. oil stocks appear simultaneously, causing a double blow to CAD.