The euro’s slide this week has been prompted by renewed concerns about the health of the eurozone’s banking sector. Although the ECB’s willingness to provide ample liquidity should ensure the financial system does not seize up, we expect Europe’s single currency to come under further pressure. Our end-2010 forecast is 1.20 against the US dollar, and we expect a further drop to parity next year.
Become a client to read more
This is premium content that requires an active Capital Economics subscription to view.
Already have an account?
You may already have access to this premium content as part of a paid subscription.
Sign in to read the content in full or get details of how you can access it
Register for free
Sign up for a free account to:
- Unlock additional content
- Register for Capital Economics events
- Receive email updates and economist-curated newsletters
- Request a free trial of our services