Praeting to the converted

ECB monetary policy will remain easier for longer, which means an extension of the asset purchase programme (APP) while maintaining current forward guidance. There are however other pro-euro forces at work. First, politics. Trump’s travails will eventually lead to flight from the US dollar. Second, the US is late cycle and the Eurozone is only just embarking on its pick up. That should lead to outright Eurozone growth outperformance over the next 12-months. And that will continue to buoy the single currency over the medium-term.

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