The euro traded below the US dollar on the 14th of July, a first in nearly 20 years. Economists at the National Bank of Canada continue to see some lingering euro weakness in the short term with the potential for a little appreciation of the common-area currency further out on the forecast horizon.

Growth to moderate in the second half of the year

“The current situation in Europe is precarious and will require material improvements on both the geopolitical and inflation fronts.”

“Growth is likely to moderate in the second half of the year.”

“We continue to see some lingering euro weakness in the short term with the potential for a little appreciation of the common-area currency further out on the forecast horizon as the USD weakens.”