The euro continued its surge against the dollar
The euro continued its ascent against the dollar increasingly weakened. On Wednesday, the euro hit a new high for more than five months to $ 1.36. A series of disappointing indicators have revived in recent days on concerns of U.S. growth markets.
"So we expect to see the Fed increase its purchases of government bonds to support the economy, as it has announced. It finances the purchases by printing dollars. The mass of greenbacks in circulation may be exacerbated, and that currency drops very logically, "says Patrick Fraguier, head of strategy at CAAM.
The greenback's decline is an effective way to boost the competitiveness of the U.S. economy. "A non-cooperative game among states is set up. The foreign trade deficit will slow growth in the United States, which have the reverse.However, China does not revalue its currency. Americans are forced to leave their spin, "says Patrick Fraguier.
The yen also makes the cost. But the Japanese monetary authorities, worried about the Japanese economy, already intervened to limit its rise and could recur.
The ECB does not intervene, her on the forex market, the euro could continue to appreciate among the major currencies. But the euro area also has weaknesses that can weigh on its currency: a heterogeneous back, Shortage of current tax, debt and concern in some states.
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