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Why the euro won't retreat anytime soon
As the eurozone economy goes from strength to strength, Market Analyst Michael Ingram from BGC Partners says investors who had been thinking the euro would retreat, can think again.
He says: “If we’ve got relative economic momentum in Europe’s favour at the moment, that’s going to keep people buying into European assets. Also, if you have deflationary risks, particularly focused on the eurozone, that’s going to keep investors buying European bonds.”
He adds: “The ongoing earnings season in Europe, which seems to be turning out reasonably well, is going to keep the euro strong. So people who were expecting a rapid retreat down to the 1.28 level are going to be disappointed. At the moment I see it trading at 1.38.”
The eurozone economy grew by 0.3 percent in the final three months of 2013, up from 0.1 percent growth in the previous quarter.
And French government figures indicated the country's economy grew by 0.3 percent in the last three months of 2013, whilst Germany's GDP expanded by 0.4 percent.
01:38 minutes
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