Report

Why is the euro still weak against the dollar?

To explain the trend in the dollar/euro exchange rate, we can use short-term arguments: the expected trend in interest rates, the outlook for inflation. But fundamentally, the dollar/euro exchange rate is explained by the relative attractiveness of the United States and the euro zone for capital. Thanks to higher potential growth and higher spending on R&D and technological investment, the United States is structurally more attractive for investments than the euro zone, causing the euro to structurally weaken against the dollar.
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Natixis

Based across the world’s leading financial centers, Natixis CIB Research offers an integrated view of the markets. The team provides support to inform Natixis clients’ investment and hedging decisions across all asset classes.

 

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