- The eurozone is stuck into low or even negative growth on the border of deflation.
- Yet the ECB balance sheet has shrunk, this will not last as the risks are increasing.
- Risks are a deflationary shock from the Russia crisis and tightening US monetary policy.
- The euro will also suffer from a flight into the dollar as a result of its safe haven status in times of international crisis.
Sell the euro
August 14th, 2014 · No Comments