ECB this week, euro to fall again? - AmpGFX
|Greg Gibbs, Founder, Analyst, & PM at Amplifying Global FX Capital Pty Ltd explained that the US economy has retained strong momentum, generally beating expectations, while the Eurozone economy has lost momentum and has consistently underwhelmed expectations over recent months.
Key Quotes:
"The ECB said it has been monitoring strength in the EUR since January."
"The evidence suggests that indeed EUR strength has contributed to weaker growth and is a problem for the ECB."
"The EUR has fallen after the last four ECB meetings, as Draghi emphasised patience and warned of risks. The same appears likely this week."
"It may seem distracting to consider relative economic trends and rate spreads when the USD has suffered a big picture slump in confidence, but the background noise may no longer be drowning out the economic action at the front of the stage."
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