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George Soros: The Euro is here to stay; momentum is for higher Euro and lower Yen

Posted
1/24/2013 6:05:00 PM
By: FXstreet.com
Referenced Stocks:

FXstreet.com (Barcelona) -The emblematic investor George Soros, speaking at the World Economic Forum in Davo (Switzerland) told the audience that "the euro is now here to stay," according to Bloomberg.

Soros was one of the main detractor of the shared-currency back in June last year, when structural problems in Europe were escalating, peripheral yields were going through the roof, and another long list resulting on a grey outlook for the currency.

However, once the ECB President Mario Draghi sent the famous message "the ECB will do whatever it takes to save the euro", only then, a change in Soros' opinions started to form, thus he shared with the audience that the immediate crisis is over.

Although he stressed that "there is no time for complacency, and that austerity is not what Europe needs right now" notes Matthew Boesler from Business Insider.

Soros added that the next 12 to 24 months will still be "very tense," as Germany will continue to err on the side of caution when taking bold actions needed to re-assure to investors the survival of the euro.

Further comments from Soros, courtesy of Tony Connelly, Europe Editor for RTE News, Ireland's public service broadcaster:

"The momentum is for the euro to rise and the Yen to fall, but it will be resisted by the US. The divergence between the Yen and euro will be aggravated, will badly affect Germany. Europe is an outlier in that it's not involved in quantitave easing."