Euro-zone economy struggling, euro heading to parity

Data released this week showed that the euro-zone economy eked out a small expansion in Q1, but we think that it will contract in Q2. The weak economic outlook combined with the ECB's likely more gradual tightening compared to the Fed suggests that the euro will continue to depreciate - we suspect that it will soon reach parity against the US dollar. UK Drop-In (5th May 10:30 EDT/15:30 BST): Our UK Economics team are holding a special 20-minute briefing to discuss the latest MPC decision and what it means for their outlook for UK growth, inflation and BoE policy. Register now

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