Economists are divided as to how high, if at all, the US Federal Reserve will hike interest rates. But the signs are there for a slowdown in US growth, ending the dollar's surge against European currencies.
Interest rates in Europe are close to neutral but not restrictively, says Paul Mortimer-Lee, head of market economics at BNP Paribas. Therefore, European growth will be 3.5% this year and close to 3% next year, and for the first time in many years you will see Europe growing faster than US next year. We think that that will have a big impact on the currency market.
Some volatility has also been predicted within the Asian region as...
