July 30th, 2020
European Central Bank mum on euro gains so far
While much of the currency market is focused on the dollar's decline, the 7%+ surge in the euro's trade-weighted index (TWI) to its highest in 6 years is eye catching on its own - coming amid positivity over post-virus fiscal plans and related reductions in euro breakup risks, as well as relative European success in keeping the virus at bay so far and trans-Atlantic equity switching. These sorts of euro surges have been met with ECB verbal intervention in the past - especially in the light of persistent deflation fears. But corporate Europe has been quiet on the issue so far too and the euro's TWI has curiously just come back to within a whisker of where it was at launch in 1999.
Chart by Ritvik Carvalho and commentary by Mike Dolan.
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