... We realise that this will be a controversial view given the real and ongoing issues around sovereign risk and the European outlook. While we do see sustainable Dollar strength in the more distant future, we think the short-term pressures are likely to reverse.
Two key forces have led the EUR/$ from 1.51 to current levels; relative growth surprises between the US (positive) and the Eurozone (negative), and the fiscal tremors emanating from Greece. After a new set of fiscal measures announced by the Greek authorities, and their endorsement by members of the Eurogroup and the ECB, the risk premium has...
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