Strong Euro Is Here To Stay

Minenna, Marcello, (2017), “Strong Euro Is Here To Stay”, Social Europe, 4 Σεπτεμβρίου

The euro rally on FX markets really begins to look interesting now: 1.2 on the Dollar, a level never experienced since January 2015, just before the ECB’s official announcement of its Quantitative Easing program.

This year, the Euro has strengthened by over 14% against the US currency. A paradox lies between the lines: the Federal Reserve has delivered three increases in official interest rates, which according to economic theory should have given wings to the Dollar’s flight, encouraging capital flows into the US economy. Conversely, the ECB explicitly intends to wait a lot more after the already controversial expected end of QE that was like the elephant in the room in the last meeting of central bankers at Jackson Hole the 25^th of August.

Σχετικές Αναρτήσεις

• Speciale, Alessandro, (2017), «ECB Worried About the Euro? Economists Say ‘Not So Much’», Bloomberg Markets, 5 Σεπτεμβρίου
• Speciale, Alessandro, Skolimowski, Piotr, Tartar, Andre, (2017), «Draghi Seen Acknowledging Euro Gains at September Decision», Bloomberg Markets, 3 Σεπτεμβρίου