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Back Fundamental analysis
The Euro Faces Pressure from Both Sides
The euro is currently under pressure
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The euro is currently under pressure from two directions. The energy shock is redistributing euro-area income in favor of oil and gas exporters, while France's budget crisis is testing the resilience of the monetary union. The ECB can mitigate only one of these two pressures. Terms of Trade Dynamics The asymmetry of the shock is clearly visible in the terms of trade. Citi's terms-of-trade index for the euro area has been falling since January, while the index
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Marek Petkovich,
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