FX Alpha 05 November 2013

Misguided reaction of EUR-USD to low euro zone inflation?

 

Misguided reaction of EUR-USD to low euro zone inflation? Misguided reaction of EUR-USD to low euro zone inflation? We argue that the euro-positive effect of lower inflation will dominate the negative effect of potential rate cuts in the long run. In that sense low EUR prices are a buying opportunity – regardless of the ECB reaction next Thursday.

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