What is the outlook for the Dollar/Euro exchange rate? Economists at Natixis expect the shared currency to weaken in the medium term.

A continued depreciation of the Euro against the Dollar is likely

“Once the period when the Dollar/Euro exchange rate is dominated by interest rate movements has come to an end, we believe that a period of steady depreciation of the Euro against the Dollar will start. This is because, when looking at non-resident capital flows to the US and the Eurozone, it is clear that the US is more attractive in terms of sovereign and corporate or bank bonds and direct investment.”

“The greater attractiveness of the United States for non-residents should logically lead to a trend depreciation of the Euro against the Dollar in the medium term.”