Economists at Société Générale analyze EUR outlook.

The Euro needs a helping hand – from the economy 

Consensus growth forecasts for 2024 are moving in the Euro’s favour, but only because 2023 ones are going the other way! 

The Euro needs underlying sentiment about growth to improve, which means it needs better economic data because it’s now doing much better than rate expectations would suggest. 

The last month or so has seen the Euro recover without relative rates moving in its favour. Short-covering, or a mood shift? Whatever it is, it needs to find some solid foundations soon.