Euro Struggle Set To Continue


The European Central Bank has recently highlighted the falling pace of net capital outflows, but this is not necessarily positive for the euro, says Catherine Lee, chief euro economist at Royal Bank of Scotland Financial Markets in London. The reversal in capital outflows reflects a surge in portfolio debt inflows, which have widely hedged FX risks. These have little impact on the euro when compared to direct investment and portfolio equities outflows, both of which are at higher levels than

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