Movement into euro is expected by central banks adding more of the currency to their reserves over the next two years
Factors increasing the currency's attractiveness:
- Crises that impacted Europe have receded
- resurgent economy
- euro yields expected to rise
- European Union pursuing free-trade deals as U.S. protectionism rises
Jens Nordvig was Wall Street's top-ranked currency strategist for five years running (now of Exante Data) says
- "A lot of countries around the world are turning to Europe for increased partnership in trade'' It's not crazy to think that's also going to be happening in the area of capital markets and reserve allocations.
- The bottom line is, this trade stance the U.S. has now is not helpful in terms of making the dollar attractive" for central banks that hold billions in reserves."
- estimates a half-trillion dollars could flow into the euro in the next two years
More here at Bloomberg
