Institution: Weak growth in the Eurozone and fiscal concerns may suppress the rise of the euro.

Jin10 data reported on October 20, analysts at Monex Europe pointed out that the recent appreciation potential of the euro is still constrained by the weak growth trend in the eurozone and concerns over fiscal issues. The bank believes that if market risk appetite remains strong and the interest rate differential continues to tilt towards the euro, there is still slight room for the euro to rise. However, analysts emphasize that “ongoing concerns about economic growth and fiscal pressure in the eurozone mean that the euro is unlikely to achieve sustained appreciation before clearer signs of endogenous resilience appear,” which contrasts with Monex's relatively optimistic outlook on the eurozone's medium to long-term prospects.