France, UK inch closer towards recession

There's been a lot of back-and-forth between the UK and France over who has the worst economy, but ultimately they're both in trouble and neither has a strong near term future. The argument is a side show distraction for internal voters. The UK will continue to be hampered by the austerity program which has been too harsh and counter productive. Their banking industry, which provided a substantial portion of growth in the past won't return to it's "glory" days any time soon. (Or at least we should hope it doesn't.) In addition, nearly half of all trade is done with Europe which is on the edge of major problems. France has its own issues plus its a central player in the eurozone which is teetering on the edge of maybe not collapse, but significant restructuring. The eurozone of today is very likely to be very different from the eurozone of this time next year. There are too many open questions to provide for a stable market which means lots of action for currency traders. It's never good to get in the middle of traders who are looking for an opportunity to squeeze. Much of Europe avoided the depths of the recession that was experienced in the US a few years ago (which continues, of course) but 2012 may be the year it finally arrives.