With bad economic indicators piling up in recent weeks, the pain is becoming relentless in the euro area.
The European Union's politics, finances and its interest-rate path are all exacerbating euro weakness, driving the common currency toward parity with the dollar. Even Europe's largest asset manager, Amundi SA, says a one-for-one exchange rate could happen by the end of the year. Europe may not be in an existential crisis, but it's surely in a pickle.
The euro is getting dunked by the wake of an omnipotent American economy, equity market and dollar. Frustratingly, it seems to have lost control of its own destiny, with every pathway seeming to be dictated by what U.S. President-elect Donald Trump may or may not do. In stark contrast to the stagnating growth picture in Europe, the Atlanta Fed GDPNow indicates fourth-quarter U.S. gross domestic product rising by 2.6% — suggesting a positive backdrop for further dollar gains.
With your current subscription plan you can comment on stories. However, before writing your first comment, please create a display name in the Profile section of your subscriber account page.