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I will be analysing this upward trend and its causes, followed by a turnaround of the general movement. As the exchange rate goes from February 2006 through March 2006, a steady downward trend is developing, which implies a turnaround in future expectations at the end of the investigated 3-month period.
Leading up to December 2006
The Euro area
The growth rate of the Euro area has been relatively low for recent years, specifically not exceeding 2% from 2001 to 2005 . Nevertheless a significant ‘boost’ had occurred in 2006. A 2.7% growth rate in the second quarter provided expectations of even higher rates in the following quarter but weren’t reached with an actual result of 2...
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