Three mechanisms leads to a further USD depreciation against the euro – Natixis
- 23rd June 2020
- Posted by: Hakeem
- Category: FOREX LATEST NEWS DAILY
Economists at Natixis believe the US dollar can depreciate against EUR due to capital flowing back to emerging markets, financial markets worries about Joe Biden election and greater monetary expansion in the US than in the eurozone.
“A continued return of capital to emerging countries, encouraged by the abundant money creation in the United States and investors’ search for returns.”
“Anticipations of Joe Biden being elected, which could discourage investment in the United States in reaction to his programme: higher wages, restrictions on oil and gas production, higher taxation of companies and wealth, capital gains.”
“The fact that the monetary expansion will be much greater than in the eurozone in 2020.”