As the European economy is recovering from the largest economic shock of modern history, we are revising our growth and inflation assumptions to the upside. Although the path to recovery is uneven among member states, we believe the EU will see two years of strong growth while inflation should revert below 2%.
The ECB should implement a smooth transition from its emergency policies to a “classic” QE and keep policy rates on hold. We see the EUR/USD moving gradually towards 1.15 over 12 months.
You can now read the full whitepaper at the link below