Herein lies the ECB paradox.
Our Willem Marx joins us tonight from London. So how do you explain the stronger euro versus dollar earlier in the year from 1. Coca-cola was downgraded to hold from buy at HSBC.
But what you have is not only political pressure but consumer pressure. Strategists say you can partly point to those rising European stocks and bonds, driven by easy policies of the ECB.
That explains why the consensus view going into was for the euro to weaken against the dollar because the Fed is in tightening mode while the ECB is firmly in easing mode.
For each U. Now, that could change. First, the euro zone faces stagnant or near-zero growth and anThe next path for the euro could be determined by whether the voracious demand holds up for European stocks and bonds. Bookmark the permalink. The U. What about the prime minister? Phil LeBeau has been covering the story for us all along. And historically, currencies do tend to follow relative paths of interest rates. In other words, interest rate differentials typically serve as a primary driver of currency values. Herein lies the ECB paradox. So far this year, European investors have been happy to stay close to home—European fixed income assets have done very well this year, especially on a volatility-adjusted basis. We do thank you very much for that support. The pilots have done that in the past. Phil LeBeau. Treasurys has yet to come. Rather they are a means to owning an asset class, whether it be stocks, bonds, real assets, etc. European peripheral bonds staged an even more remarkable comeback.