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The burden of the strong euro
The euro is near an eight month high against the dollar and many are saying $1.40 is not far away. Michael Ingram, market strategist at BGC Partners, says the ECB is becoming increasingly uncomfortable with the currency at this level. He says it's a real "pain zone" for the central bank right now. He believes the euro will be increasingly "talked down" and we could see an interest rate cut in the first part of next year.
This week sees a great deal of economic data from the Eurozone. Michael says that even though we're in growth territory, the quality of that growth is still very worrying. He points out that bank lending in the core of Europe is at a two year low and in the periphery, it's contracting faster than it ever has. Europe, he says, has an awful long way to go.
01:33 minutes
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