CBC Blog

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A Short View of the Eurozone?

 

Latest liquidity data show deteriorating Eurozone conditions. This isn’t good news, but it is consistent with our view that the Eurozone economies are mid-cycle and that the rise of the Euro is likely to impede economic growth from around mid-2018 onwards. The data picture is consistent across the Eurozone economies, with Germany leading the slide. Perhaps the puzzle is why the Euro continues to gain strength against the US dollar? Does this tell us something more worrisome about the US dollar’s long-term trend?

 

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