9 Jan 2014
Flash: Euro outlook still positive as 2014 unfolds - ANZ
FXstreet.com (Barcelona) - While the euro area inflation is a concern, according to Brian Martin, European Strategist at ANZ, the Euro should remain firm.
Key Quotes
"The dynamics of disinflation in the euro area seem to be quite different from Japan and it is not in anyway certain that deflation is poised to grip the economy."
"A revival in demand will underpin prices whilst the positive medium-to-longer run output benefits from reform should help to raise the real value of the exchange rate."
"Add to that the reallocation of capital to the euro area peripherals (an estimated EUR760bn left those countries in 2011 and H1 2012) and the prospects for the euro continue to look encouraging in our view."
Key Quotes
"The dynamics of disinflation in the euro area seem to be quite different from Japan and it is not in anyway certain that deflation is poised to grip the economy."
"A revival in demand will underpin prices whilst the positive medium-to-longer run output benefits from reform should help to raise the real value of the exchange rate."
"Add to that the reallocation of capital to the euro area peripherals (an estimated EUR760bn left those countries in 2011 and H1 2012) and the prospects for the euro continue to look encouraging in our view."