by Michael J. Howell3. July 2017 14:51The Euro looks to be 10-15% undervalued, according to BIS real exchange rate data. Changing capital flows prompted by (1) improving economic data and (2) less dovish statements by European policy-makers are pushing back towards this equilibrium. In short, the Euro could be a key beneficiary of US dollar weakness over coming months. What is different in this report is the evidence we bring of the broadness of Eurozone economic recovery and the fact that the long-slated end to ECB QE may already have started.
03aaccbd-bb8a-4c02-a0d7-a0ea5d4363fd|1|4.0|96d5b379-7e1d-4dac-a6ba-1e50db561b04
Tags: