This report reviews the 'Euroglut' hypothesis introduced in October 2014, which predicted European capital outflows leading to euro weakness. The report confirms the hypothesis, showing significant Eurozone portfolio outflows, primarily to US bond markets, exceeding the current account surplus and contributing to EUR/USD weakness. The report forecasts continued euro weakness and addresses criticisms from the Federal Reserve Bank of New York.
documents/vol00010-efta01459034-pdf.pdf
{"title":"Euroglut a year on: alive and kicking, EUR/USD to break parity","key_people":["George Saravelos","Robin Winkler"],"document_date":"2015-12-01","document_type":"correspondence","key_locations":["Eurozone","US","Germany"],"document_subtype":"Special Report","key_organizations":["Deutsche Bank","Federal Reserve Bank of New York"],"reference_numbers":["DB-SDNY-0119234","SDNY_GM_00265418","EFTA01459034"]}