Potential for some Euro appreciation in the second half of the year – NBF

The month of March proved eventful for the Euro with a nearly 4 cent difference between the low and high marks. Economists at the National Bank of Canada expect the shared currency to strengthen in the second half of the year.

Financial system volatility

“March was characterized by disruption in the global financial system stemming from the repercussions of woes in the US banking system. Compounded to this was the takeover of Credit Suisse by UBS. With the dust now settling from the transpired events, the collective currency has stabilized to some extent.”

“Continued tightening by the European Central Bank and a let up from the US Federal Reserve could translate into a narrowing of monetary policy. As such, we see the potential for some Euro appreciation in the second half of the year assuming data remains resilient on the European side.”