‘Graham Walker’: Investors remain concerned despite the EU’s announcement of the long-awaited Greece support package.
Online PR News – 07-April-2010 – – Sources close to European-based investment firm, “Graham Walker” are mindful of the lukewarm response from financial markets following the finalization of an aid package for Greece should it face severe difficulties repaying its huge debts.
The firm is thought to believe that doubts remain over Greece’s long-term ability to service its debt given the fierce resistance from the Greek public to two recently announced austerity packages and the fact that Greece is saddled with borrowing costs more than double those of Germany.
“Graham Walker” analysts have suggested that, although the euro pared some of its losses against the US dollar, it was more than likely that investor attention would centre on the long-term implications of the European Union apparently being unable to resolve the issue within the confines of its membership and enlisting the participation of the International Monetary Fund (IMF).
The “Graham Walker” analysts believe that the euro will resume its decline against the dollar and other major currencies if the markets decide to focus on Spain and Italy’s woes but they also suggest that paper currencies in general are all set to devalue over the medium term bringing them closer to the value of those of the emerging economies of Asia and Latin America.