18:59 8 August 2020
Euro doing better and better during the crisis: analysts
Due to the general improvement in market sentiment, the difference in coronavirus statistics between the US and Europe and the acceptance of the European Union stimulus package, the euro is growing in strength. It has been paired with the US dollar recently at the highest since May 2018 and it can be expected to strengthen further, Ebury analysts Enrique-Diaz Alvarez, Matthew Ryan and Roman Ziruk believe.
"As expected, the euro continued its upward trend. Contrary to the situation in the US, it seems that European authorities have managed to contain the spread of the coronavirus. The number of new daily cases of infection in the four most populous euro area countries (Germany, France, Italy and Spain) in this respect, June was at its best by about 90%. Most of the security measures implemented in the countries of the currency bloc have been gradually phased out. several local outbreaks," noted Ebury analysts.
"The easing of the coronavirus restrictions was conducive to the improvement of data on economic activity. This improvement positively surprised economists. It raised hopes that the recovery may resemble the letter 'V' more than assumed. Key PMI indices describing the situation in industry and services showed significant increases in relation to the record lows recorded at the height of the current crisis," they added
