The Euro In Trouble

  • The ECB has good reasons to be reluctant to embark on monetary tightening with anywhere near the same zeal as the Fed recently displayed.
  • A bigger economic impact from the Ukraine war, potentially nasty debt dynamics, and the benefits of inflation for taking some of the edge of the latter are all good reasons.
  • This is why the euro is likely to remain soft against the US dollar.
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The Euro In Trouble