Euro led a decent fight this week against a return to growth in the dollar. Yes, he lost the battle against the dollar, but won against the Scandinavian currencies, Aussie and Swiss. As we expected, the differential in interest rates was supportive factor for the euro, though the average two-week overnight rate for the euro has almost doubled since the end of September. This is important because there has been a point of view, it will reduce other long-term interest rates. Continued hawkish rhetoric, ECB officials also contributes to higher interest rates. Meanwhile, EU leaders gather in Brussels and Germany once again recall the urgent need for institutional reforms. This is important in the context of long-term prospects for the euro and reduce the risks of future crises, because costs keep track of such decisions.
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