Something incredibly rare happened in the Eurozone this week – economic predictions were beaten on the upside lulling many traders and investors into a sense that the Euro crisis is coming to a close. It isn’t. Germany defied concerns of a slowing economy by registering Q2 GDP growth of 0.7% versus flat lining in Q1 and the Eurozone’s number two economy, France, managed 0.5% in Q2 – both comfortably surpassing the expectations of many economists. Even the struggling peripheral Eurozone countries are showing tentative signs of stabilising. By Justin Pugsley, Markets Analyst MahiFX Follow MahiFX on twitter Though the Eurozone crisis has abated for the time being, it is actually alive and well festering just beneath the surface and it won’t take much to kick it off again. Beware the EUR sirens Peripheral countries are deeply scarred The hope is that Germany and France will pull the rest of the Eurozone out of the economic quagmire, at least if they can sustain their own growth. But countries such as Spain, Italy and others are so deeply scarred by austerity that recoveries there could take years to be felt by the majority of the population. Also, much of their productive capacity has been destroyed making it harder to quickly capitalise on the growth of their neighbours. Indeed, trade surpluses in some of these countries more reflect the widespread destruction of domestic demand rather than a return to competitiveness This leaves the Eurozone hostage to political events, such as governments imploding in peripheral countries and the rise of extremist parties, which do not share a vision for a united Europe. Unfortunately, economic instability fans political uncertainty and years of depression like conditions in these countries have created a fertile breading ground for extremist views. In the short-term the biggest economic beneficiaries of German and French growth could be other non-Eurozone European countries such as the UK and Switzerland, which could see their currencies firm further versus other currencies such as USD. But come September European fund managers will return to their desks and may not entirely like what they see in the Eurozone. There are German elections in late September, which will create a degree of uncertainty and other events such as the US Federal Reserve tapering its quantitative easing programme. The EUR is still far from being saved, let alone the crisis being ended. Further reading: Worsening Eurozone debt levels could see September Euro sell-off Justin Pugsley Justin Pugsley MahiFX is headed by David Cooney, former global co-head of currency options and e-FX trading at Barclays Capital and responsible for the award winning e-commerce platform BARX and Susan Cooney, former head of e-FX Institutional Sales in Europe for Barclays Capital. Operating as a market maker, MahiFX provides traders direct access to institutional level execution speeds and spreads through its proprietary-built fully automated pricing and risk management technology, lowering the cost of retail forex trading. MahiFX global operations are headquartered in Christchurch, New Zealand with offices in London, UK with development and support teams in both locations for 24 hour service. The company is regulated by The Australian Securities and Investments Commission (ASIC), Australiaâ€™s corporate, markets and financial services regulator. Article by Justin Pugsley, Markets AnalystÂ MahiFXÂ Follow MahiFX onÂ twitterÂ and onÂ facebookÂ Disclaimer: This material is considered a public relations communication for general information purposes and does not contain, and should not be construed as containing, investment advice or an investment recommendation, or an offer of or solicitation for any transactions in financial instruments. MahiFX makes no representation and assumes no liability as to the accuracy or completeness of the information provided. The use of MahiFXâ€™s services must be based on your own research and advice, and no reliance should be placed on any information provided or comment made by any director, officer or employee of MahiFX. Any opinions expressed may be personal to the author, and may not reflect the opinions of MahiFX, and are subject to change without notice View All Post By Justin Pugsley Opinions share Read Next Aussie Consolidates but Rebound Still Intact Till .9300 Edward Moya 9 years Something incredibly rare happened in the Eurozone this week - economic predictions were beaten on the upside lulling many traders and investors into a sense that the Euro crisis is coming to a close. It isn't. Germany defied concerns of a slowing economy by registering Q2 GDP growth of 0.7% versus flat lining in Q1 and the Eurozone's number two economy, France, managed 0.5% in Q2 - both comfortably surpassing the expectations of many economists. Even the struggling peripheral Eurozone countries are showing tentative signs of stabilising. By Justin Pugsley, Markets Analyst MahiFX Follow MahiFX on twitter Though the Eurozone… Regulated Forex Brokers All Brokers Sponsored Brokers Broker Benefits Min Deposit Score Visit Broker 1 $100T&Cs Apply 0% Commission and No stamp DutyRegulated by US,UK & International StockCopy Successfull Traders 9.8 Visit Site FreeBets Reviews$100Your capital is at risk.2 T&Cs Apply 9.8 Visit Site FreeBets Reviews$100Your capital is at risk.3 Recommended Broker $100T&Cs Apply No deposit or withdrawal feesTrade major forex pairs such as EUR/USD with leverage up to 30:1 and tight spreads of 0.9 pips Low $100 minimum deposit to open a trading account 9 Visit Site FreeBets ReviewsYour capital is at risk.4 T&Cs Apply Visit Site FreeBets ReviewsYour capital is at risk.5 Recommended Broker $0T&Cs Apply Trade gold, silver, and platinum directly against major currenciesUp to 1:500 leverage for forex trading24/5 customer service by phone and email 9 Visit Site FreeBets ReviewsYour capital is at risk.