Bloomberg
Published Jul 21, 2020 05:30AM ET
Updated Jul 21, 2020 05:54AM ET
Euro Is Turning Into ‘Credible’ Safe Haven After EU Rescue Deal
(Bloomberg) -- Europe’s landmark recovery deal is just what the euro needs to press on with a rally that could send the common currency to multi-year highs, according to strategists.
Having been in the doldrums since the euro area sovereign debt crisis nearly ripped the bloc apart less than a decade ago, strategists see the common currency roaring back in the coming months, potentially as high as $1.30.
For the first time member states will underwrite joint bond issuance, posing a challenge to the hegemony of the dollar in financial markets.
Here’s what market strategists said:
Mizuho (Euro can climb to $1.30)
The euro is becoming “more credible” as a safe haven following the deal reached by EU leaders and will rally over the next 12 months toward $1.30, a level not seen for six years, according to Peter Chatwell, head of multi-asset strategy
Credit Agricole (OTC:CRARY) (Massive pool of bonds created)
Commerzbank (DE:CBKG) (Air is getting thinner for BTPs)
Rabobank (Play euro versus Swiss franc)
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Written By: Bloomberg
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