Ireland shows growth potential of Euro zone as unemployment hits lowest since 2008

Ireland has posed by European politician as the poster child of reforms, and rightly so. It clearly shows the potential for growth in European economies cleansed with reforms and with the help from European Central bank (ECB).

Ireland is now growing at fastest rate among all European economies, GDP grew 1.4% in second quarter. Latest report shows that Irish unemployment dropped to 9.4% compared to 15% in 2012.

Irish assets mainly real estate has benefited lot from recovery and similar potential could be seen in European countries, especially the peripheral ones and those under economic program.

Spain, Italy and Portugal as of recently have started to pose evidence of economic recovery and assets in those countries, including the stock market is likely to see better return ahead.

Trade idea -

• Euro area with its large trading surplus with the world makes Euro an excellent buy against deficit currencies of the world.
• Though in the medium term, Dollar is likely to rule with monetary policy divergence, Euro remains buy in the very long term, which makes European assets more attractive.

Euro is currently trading at 1.122 against Dollar.