EUR: The New Yen?
The euro and the ‘old’ yen (pre-Governor Kuroda) are becoming more alike, and today’s dataflow could invite even closer comparisons between the two. Japan’s economy was traditionally characterised by a current account surplus and the presence of weak, or even absent, inflation. Now, the Eurozone also boasts a comfortable current account surplus. Disinflationary pressures are asserting themselves inside the Eurozone as well – a fact noted in the US Treasury’s semi-annual report on exchange rate policies released overnight.
Read the full report: UBS