EU recovery fund

A Resurgent Euro: Illusion Or Reality?

In the medium term there are reasons to believe that the euro should appreciate very gradually over the coming year, boosted by the reduction of EMU–US interest rate differentials and the increased demand for euros to acquire the new European asset known as coronabonds.

Spain inflation

The Euro Suffers From Weaker Data

David Kohl, (Chief Currency Economist, Julius Baer) / US growth superiority continues for longer than expected. The economic headwinds caused by measures to contain the spreading of the coronavirus are stronger for the Eurozone than for the US and support safe-haven currencies. We have adjusted our 3-month euro forecast down while being slightly more constructive for the JPY.

euro area

Will we see a modest recovery of the euro?

The inflation data for March will be the key publication of this week. With the market discounting a 0.1% drop in the main figure, Ebury analysts believe that a 1% inflation would be enough to drive a modest rebound in the euro from its current position.

euro-dollar relationship

How Does The Euro Fit In The Currency Puzzle?

Where the euro may go in 2018 is such a central question and will have implications for global asset markets around the world. Christopher Gannatti, head of research at Wisdom Tree, thinks that “forecasting currencies is very much like putting together a puzzle”, at times requiring just as much art as data.

The “R” club is recruiting

Can The Euro Sustain The 2017 Rally?

The Euro was by far the best performing G10 currency in 2017, returning 15 % over the period. ETF Securities’ analysts expect that the Euro should end Q1 2018 under the 1.20 level, broadly in line with Bloomberg consensus estimates of 1.19. However, they think “this displays the downside risk to the Euro remain elevated”.

ECB's communication strategy on QE

Unpleasant rumblings in Euro land

James Alexander | As some debate raged in the corridors of the ECB about both Draghi’s successor and over when and how to end the QE for the EUR, the common currency remained strong, helping keep the USD weak.

Peter Bofinger

“Germany benefits from the euro, but acts as if it doesn’t exist

“In principal, the euro is a good idea. The aim is to create a big economic space without any monetary barriers, like the US. But a common space implies that member states are prepared to take each other into consideration as far as their economic, financial and wage policies are concerned,” says Peter Bofinger, one of the five ‘wise men’ who make up the German Council of Economic Experts.