Rising Euro Sinking dollar
The rising euro is slow torture for Europe's Covid-battered economy, and the ECB can't stop it.
The ECB’s trade-weighted euro index is just shy of its all-time high. It has jumped 7pc this year even though Europe has suffered the greatest economic damage of any region in the world
The new twist is the sliding dollar.
The eurozone’s ideology of ‘export-or-die’ and its hair-shirt fiscal regime - Stability Pact, Fiscal Compact, etc - combine to produce a structural current account surplus near 3pc of GDP. This addiction to surpluses is a recipe for a higher currency over time.
Ambrose Telegraph 8 December 2020
Kommentarer