Monday, February 19, 2018
Banner Top
EUR/USD: Euro still has some room to rally – SG
Banner Content

Analysts at Societe Generale (SG) are out with their take on the EUR/USD pair, noting that the Euro still has some room to rally.

Key Quotes:

“We think old-fashioned purchasing power parity is a useful building block of where ‘normal’ might be

Suggests that the euro still has some room to rally

In the past 10 years, the EUR/USD spot rate has averaged 1.29

The OECD’s estimate of the EUR/USD PPP fair value has averaged 1.29 too

That’s just a coincidence that contrasts with some of the other currencies (the USD/JPY and EUR/CHF have both fallen far below PPP on average over the last 10, 20 or even 30 years, for example).

The Eurozone, like Japan and Switzerland, has a big current account surplus, but it also comprises a lot of different countries, which affects the FX valuation…. still think that the EUR/USD PPP level (just under 1.34 at the moment) is a reasonable guess of where the long-term EUR/USD average might be going forward.“

Banner Content

0 Comments

Leave a Comment

Jimmy BUY LICENSE 1 out of 5 agents online CHANNELSAGENTS Add agent Add communication channels: Chat on site Telegram Mobile SDK Facebook Viber Email WhatsApp xtreamacademy.com SETTINGS ARCHIVES STATISTICS ASSIGN AGENTS Jimmy JivoChat code is not installed on this site INSTALL CODE xtreamacademy.com SETTINGS ARCHIVES STATISTICS ASSIGN AGENTS Jimmy JivoChat code is not installed on this site INSTALL CODE Install Code on xtreamacademy.com Installation Send instructions to my webmaster Install the following code on every page of your site right before the closing tag, or use one of the CMS plugins below: COPY TO CLIPBOARD Or select and install one of following plugins OPEN SITE SETTINGS Download the agent's app: For Windows & MacAndroidiPhoneBrowser-based Support License Agreement JivoChat Inc. © 2011-2018. All rights reserved