Question of the week | Eurodollar exchange
We are long-term positive and short-term neutral. The long-run purchasing power parity rate of 1.35 acts as a center of gravity, especially with the eurozone running a current account surplus. In the shorter term, the exchange rate tends to move in line with various contradictory factors. On the one hand, higher US rates should be dollar supportive. On the other, the euro could receive a boost from receding Brexit uncertainties and a potential strong rebound in growth in the eurozone, given the significant role that manufacturing is playing in the current slowdown.
See also :
The opinion expressed above is dated 20 December 2019, and liable to change.
This document is not pre-contractual or contractual in nature. It is provided for information purposes. The analyses and descriptions contained in this document shall not be interpreted as being advice or recommendations on the part of Lazard Frères Gestion SAS. This document does not constitute an offer or invitation to purchase or sell, nor an encouragement to invest. This document is the intellectual property of Lazard Frères Gestion SAS. LAZARD FRERES GESTION – a simplified joint stock company with share capital of €14,487,500 – Paris Trade and Companies Registry No. 352 213 599. 25, RUE DE COURCELLES – 75008 PARIS, FRANCE
