Looking at recent economic data and leading indicators, such as the Ifo Business Climate Index, I get the impression that the economic recovery of Europe’s largest economy knows no bounds. Indeed, after posting its fastest economic growth rate since re-unification (at 2.2%), my colleagues at Business Monitor International have upgraded their real GDP growth forecast [Read more...]

On Friday, August 6, Business Monitor International’s Head of Research Terry Alexander guest hosted Closing Bell Europe. Key points of discussion included the latest Eurozone GDP releases and asset class strategies amid a rallying bond market.

The last few weeks have certainly been good to the Spanish on the football pitch and the tennis court. But as the sporting hangover begins to wear off, all eyes will return to the ailing economy. Unlike Greece, Spain has not come to the forefront of investor concerns in recent months because of its sovereign [Read more...]

It is now over 9 months since Greece’s sovereign debt crisis brought the Eurozone’s stability to the forefront of investor concerns. With a trillion dollar bailout fund in place, and the recent bounce in the euro (some 5% against the US dollar), can we assume that the worst is now behind us. Justin Patrie, Head [Read more...]

 

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The euro continued to rally in today’s trading and is beginning to approach key technical resistance around the US$1.2750/EUR area. Though on the daily chart the unit is beginning to look increasingly overbought, the technical pattern points towards further upside for the euro, and I would not rule out a push to US$1.30/EUR.

Last week Mark Schaltuper, BMI’s Head of Europe Analysis, spoke on CNBC European Closing Bell about the prospect of an internal devaluation for the least competitive eurozone economies.

Financial markets seem to have a very short memory span when it comes to aligning with macroeconomic fundamentals these days. Though the release of housing sales numbers in the US today and the short-lived euphoria of China’s loosening of its exchange rate regime at the start of the week seem to have shaken up equities [Read more...]