Analyst: The long-term trend of the Euro will remain upward.

Jin10 data reported on July 14, BCA Research strategists stated in a report that given the difference between the U.S. current account deficit and the Eurozone surplus, the Euro to USD Exchange Rate could rise from the current 1.1688 to 1.40 in the long term. They noted that although the Euro may experience consolidation in the coming months—due to recent appreciation starting to pressure European exporters, the long-term trend will remain upward. Concerns about the sustainability of the U.S. current account deficit are growing. Rising U.S. policy risks, worsening net international investment position, and the disappearance of income balance support are undermining investors’ willingness to fund the U.S. deficit. In contrast, the Eurozone’s external conditions are robust, and its reliance on short-term capital flows is relatively low.