German manufacturing had been in crisis well before Russia invaded Ukraine
Putin's invasion only made this structural decline worse. Europe has an easy offset to this: a weaker currency. Euro needs to fall well below parity to offset the crisis in European manufacturing... Source: Robin Brooks
Despite all the talk, the world uses USD to trade
Source: DB
According to SWIFT, the U.S. Dollar was used for 46% of all international payment transactions in July, a RECORD high
Meanwhile, use of Euro is collapsing. De-euroization rather than de-dollarization? Source chart: Bloomberg
HAVE YOU EVER HEARD ABOUT DE-EUROIZATION ?
Based on SWIFT international payments, we are witnessing 'de-euroization' and not 'dedollarization. The euro's share in SWIFT global payments has dropped to 23% from 38% at the start of the year. Are Russia's SPFS and China's CIPS eating up the euro? Meanwhile, China's share in SWIFT payments reached an all-time high of 3.47% in August. Source: HolgerZ, Bloomberg
The Euro is now overvalued against the Dollar for the 1st time in 2 years, says the Big Mac index.
Source: The Economist
Most Expensive Euro on Record Has Traders Braced for Declines
As the Nominal effective exchange rate reached an all-time high, a dovish message from ECB this week can add pressure on the euro. Source: Bloomberg
This didn't do the headlines but the fact is that Trade-weighted Euro reached a new all-time high this week
Source: Bloomberg
Attractiveness of EUR IG vs. US IG at decade high! 📈💼
🌍 Absolute yields in the global credit market present compelling long-term entry points, especially for high-quality European corporate bonds. Compared to the US market, the attractiveness of EUR Investment Grade (IG) credit is soaring. While concerns about a deeper recession in Europe have caused some turbulence, they have also opened up intriguing investment opportunities. Moreover, the recent Credit Suisse incident has further contributed to the dynamic landscape. 📊🔍 Is it time to seize the potential yield offered by EUR IG bonds? 💡💰 Source : Bloomberg
