Skip to main content

A lot more pain to come for European currencies

Despite their precipitous fall against the dollar this year and last, we think the euro, sterling, and most other European currencies will weaken further over the next twelve month as the economic slowdown and the terms of trade shock that is hitting the region take their toll. We now expect some of the damage to Europe’s competitiveness to prove long-lasting and that a significant part of the necessary economic adjustment will come through nominal exchange rates.

Become a client to read more

This is premium content that requires an active Capital Economics subscription to view.

Already have an account?

You may already have access to this premium content as part of a paid subscription.

Sign in to read the content in full or get details of how you can access it

Register for free

Sign up for a free account to gain:

  • Unlock additional content
  • Register for Capital Economics events
  • Receive email updates and economist-curated newsletters
  • Request a free trial of our services

Get access