16 Feb 2015
EZ strengthening - BTMU
FXStreet (Guatemala) - Lee Hardman, Currency Analyst at Bank of Tokyo-Mitsubishi UFJ explained that the euro is continuing to stabilize at lower levels in the near-term remaining around 5% lower on a trade-weighted basis since late December.
Key Quotes:
"The recent stabilization in the euro has coincided with tentative evidence that economic growth in the euro-zone is strengthening."
"The euro-zone expanded more strongly than expected by 0.3% in Q4 which was the strongest expansion since Q1 bringing an end to the weakening growth momentum evident during the middle of last year."
"More robust growth in Germany and Spain were the main drivers of stronger growth momentum in the euro-zone."
"The German economy expanded robustly by 0.7% in Q4 following two quarters of stagnation. The German statistics office stated that stronger growth was driven mainly by personal consumption growth and positive business investment. In a further positive for the euro-zone economy, leading indicators are signalling that economic growth momentum is likely to strengthen further."
"Stronger growth in the euro-zone may help to ease euro weakness in the near-term but we doubt that will help to strengthen the euro given the ECB’s strong signal that it continue to implement aggressive monetary easing at least until the end of September 2016."
"It has been reported that inflows into euro-zone equities have accelerated so far this year, and the euro-zone equity market has been modestly outperforming the US equity market."
Key Quotes:
"The recent stabilization in the euro has coincided with tentative evidence that economic growth in the euro-zone is strengthening."
"The euro-zone expanded more strongly than expected by 0.3% in Q4 which was the strongest expansion since Q1 bringing an end to the weakening growth momentum evident during the middle of last year."
"More robust growth in Germany and Spain were the main drivers of stronger growth momentum in the euro-zone."
"The German economy expanded robustly by 0.7% in Q4 following two quarters of stagnation. The German statistics office stated that stronger growth was driven mainly by personal consumption growth and positive business investment. In a further positive for the euro-zone economy, leading indicators are signalling that economic growth momentum is likely to strengthen further."
"Stronger growth in the euro-zone may help to ease euro weakness in the near-term but we doubt that will help to strengthen the euro given the ECB’s strong signal that it continue to implement aggressive monetary easing at least until the end of September 2016."
"It has been reported that inflows into euro-zone equities have accelerated so far this year, and the euro-zone equity market has been modestly outperforming the US equity market."