The Euro: comeback kid

As I write, the euro stays deep in its despond at just $0.96/e. That’s a far cry from $1.15/e at its launch. Why does the euro stay weak?

There are two key reasons. First, investors still see the US economic cycle as much stronger than core Europe’s. Europe is still pottering along at around 2.5% a year while the US races by at over 4% annually. And the data for household spending continue to hit the highs in the US, while Germany struggles to register much more than 1% annual growth in shop sales.