In recent months the euro has risen sharply against most currencies. The currency's appreciation is ...
In recent months the euro has risen sharply against most currencies. The currency's appreciation is likely to continue, certainly against the US dollar. Sentiment remains firmly against the dollar, partly due to world events but also due to the low money market yield offered, and an unwinding of the currency's overvaluation relative to its fair value. In contrast sentiment is still behind the euro. The currency has been historically undervalued and, relatively speaking, offers a reasonable money market yield. Continued and prolonged euro appreciation will have a negative effect on ...
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