Liquidity data makes the case for a stronger Euro going forward
We know two facts about the Eurozone. First, Greece is again in trouble. Second, ECB QE policies are largely behind the large-scale capital outflows and the weakness in the Euro. If the ECB is called upon to print more aggressively to save Greece, then the Euro stays weak. However, this is looking less likely both politically and technically, since their ability to buy up existing debt is fast running out. Bottom line, the ECB QE effectively ends more quickly, and with the Eurozone private sectors ex-Greece in recovery, surely the Euro must rally?
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