LONG EURO

The Euro-to-Dollar exchange rate is forecast to outperform into 2022 as the Eurozone starts to deliver above trend economic growth and the anti cyclical Dollar retreats once more. Above-trend global growth and structurally lower inflation should give the euro a relative edge. The Eurozone economy is expected by the bank to recover amidst the release of pent-up consumer demand and disbursements from the European Recovery Fund. More anticipation that Eurozone will enjoy a period of above trend growth, which likely pushes the cyclical euro higher.